FORT WORTH, Texas and DENVER, MAY 26 /PRNewswire/ -- Snyder Oil
Corporation (SOCO) (NYSE: SNY) today announced the acquisition of 75 percent
of Amoco Production Company's (Amoco) interest in the Beaver Creek Unit and
two associated gas plants in the Wind River Basin in Wyoming in exchange for
the Jonah Field portion of the Company's properties in the Deep Green River
Basin Project in Wyoming. Under the terms of the agreement, effective
January 1, 1998, SOCO also receives Amoco's interest in the Deep Green River
Project outside the Jonah Field area and retains the deep rights in Jonah
beneath the Mesa Verde horizon at about 12,250 feet.
As of the effective date, SOCO's engineers estimate the acquired
properties to contain net proved reserves of approximately 100 billion cubic
feet of gas equivalents (Bcfe) with a pre-tax SEC value of $70 million. As of
the same date, the Jonah Field interest exchanged comprised 11 percent of
SOCO's proved reserves, 51 Bcfe, and had a pre-tax SEC value of $33 million.
John C. Snyder, SOCO Chairman and Chief Executive Officer, stated, "This
is a logical trade for both parties. The Beaver Creek property is adjacent
and complementary to our Riverton Dome and Wind River projects allowing us to
trade one of our better properties to obtain a larger producing property with
equally large upside potential and significant operational synergies."
SOCO President and Chief Operating Officer, William G. Hargett commenting
on the trade, stated, "The expanded Wind River Basin hub of operations allows
us to lower operating and administrative costs through the integration of
plant facilities and the combination of volumes for marketing. More
importantly, the Beaver Creek Field, a giant oil and gas field trapped in a
complexly faulted anticline, is the perfect target for redevelopment with 3-D
seismic. SOCO has recently acquired 3-D data over our Riverton Dome Field as
well as the adjacent Beaver Creek Field. Drilling results at Riverton are
highly promising, and the technology can be directly applied to future
drilling at Beaver Creek. We are targeting production to reach 200 to
300 percent of current levels within two years."
Snyder Oil Corporation is engaged in the production, development,
acquisition and exploration of domestic oil and gas properties, primarily in
the Gulf of Mexico, the Rocky Mountains and North Louisiana. The Company also
has investments in two international exploration and production companies,
SOCO International plc and Cairn Energy plc. The Company's shares are traded
on the New York Stock Exchange under the symbol "SNY." SOCO news releases and
other information about the Company can be found on the Internet at
http://www.snyderoil.com.
This release contains certain forward-looking statements, which are based
on assumptions which the Company believes are reasonable, but which are
subject to a wide range of uncertainties and business risks. Factors that
could cause actual results to differ materially from those anticipated are
discussed in the Company's periodic filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended
December 31, 1997.
SOURCE Snyder Oil Corporation
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Related links:
http://www.snyderoil.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 118962
CONTACT:
Rodney L. Waller of Snyder Oil Corporation,
817-882-5937
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