KCS Energy Makes Acquisition in North Louisiana
KCS Energy has entered into a purchase and sale agreement to acquire a property in its core area of operations in north Louisiana. The acquisition will be effective as of April 1, 2006.
This purchase from an undisclosed seller for $26.2 million involves approximately 10,300 gross acres located in Lincoln Parish, Louisiana. Proved reserves are internally estimated to be 11.2 Bcfe, of which approximately 50% are proved developed. Closing is expected to occur on or about April 21, 2006.
William N. Hahne, President and Chief Operating Officer said, "This
acquisition is another example of our search for properties with multiple
drilling locations that are adjacent to areas we are developing. Over the
last several years, we have been active in drilling and acquiring acreage in
the Elm Grove and Terryville fields in north Louisiana. This acreage fills
out our leasehold in a core area where last year we drilled seven wells and
have 31 wells and a 3D seismic survey planned for 2006. KCS has now
accumulated a substantial acreage position in this area which will allow us to
drill both infill and extensional wells."