HOUSTON, April 30 /PRNewswire/ -- Ocean Energy, Inc. (NYSE: OEI) today
announced the completion of the acquisition of the oil and gas assets of
EnSight Resources, L.L.C. The properties are located in Texas and Louisiana.
The all-cash transaction was approximately $118 million after customary
adjustments from effective date to closing. The acquisition is expected to be
paid from excess cash flows during 2001 and will be immediately accretive to
Ocean's earnings and cash flow.
"This niche acquisition gives us quality properties at an attractive price
with no appreciable impact on our balance sheet," said John Schiller,
executive vice president of operations. "We strengthen our North American
natural gas portfolio with exploitation upside and solid economic returns.
Most of these assets are situated in East Texas and North Louisiana where
Ocean has an excellent operating position and base of technical expertise."
The assets add total estimated proved reserves of approximately
101 billion cubic feet equivalent (Bcfe), of which 88 percent is natural gas.
Approximately 62 percent of the reserves are developed and Ocean estimates
that total reserve potential exceeds 150 Bcfe.
Ocean Energy, Inc. is an independent energy company engaged in the
exploration, development, production, and acquisition of crude oil and natural
gas. North American operations are focused in the shelf and deepwater areas
of the Gulf of Mexico, the Permian Basin, Mid-continent and Rocky Mountain
regions. Internationally, Ocean holds a leading position among U.S.
independents in West Africa with oil and gas activities in Equatorial Guinea,
Cote d'Ivoire and Angola. The company also conducts operations in the
republics of Egypt, Russia, Pakistan and Indonesia.
Certain statements in this news release regarding future expectations,
plans for acquisitions, dispositions, and oil and gas reserves, exploration,
development, production and pricing may be regarded as "forward-looking
statements" within the meaning of the Securities Litigation Reform Act. They
are subject to various risks, such as operating hazards, drilling risks, the
inherent uncertainties in interpreting engineering data relating to
underground accumulations of oil and gas, as well as other risks discussed in
detail in the Company's SEC filings, including the Annual Report or Form 10-K
for the year ended December 31, 2000. Actual results may vary materially.
SOURCE Ocean Energy, Inc.
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Related links:
http://www.oceanenergy.com
Company News On-Call:
http://www.prnewswire.com/comp/913463.html or fax,
800-758-5804, ext. 913463
CONTACT:
financial, Bruce Busmire, 713-265-6161, or
media, Janice Aston White, 713-265-6164, both of Ocean Energy,
Inc.
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