Mission Resources To Sell Non-Strategic Properties
Mission Resources has entered into agreements to sell non-core mature properties, through a property auction and a negotiated transaction. The sales, previously announced in Mission's third quarter 2002 earnings conference call, are expected to close in December, subject to final due diligence, and will result in approximately $15.4 million of proceeds.
Mission divested certain operated and non-operated interests in the Giddings field and all of its interests in the Eunice field in southeast New Mexico. With this sale, Mission will no longer have properties located in New Mexico. Mission also sold the remainder of its operated interests in the Permian Basin; however, the Permian Basin remains a core area for Mission. The properties sold represent approximately 950 BOE per day of production and reserves of 2.1 million barrels of oil equivalent. In conjunction with the sales, the bank facility borrowing base has been reduced by $10 million, to $40 million.
"We are extremely pleased with the results of the sale," said chairman, president and chief executive officer, Robert L. Cavnar. "These transactions help to further our goal of consolidating operations into core areas. The proceeds will be used to eliminate the $3 million outstanding debt on the credit facility, acquire select properties and enhance Mission's 2003 capital program."