HOUSTON, June 25 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today
announced it has completed the acquisition of interests in the West Mission
Valley Field and other minor properties located primarily in Victoria County,
Texas effective June 1, for approximately $24.7 million.
The properties acquired include approximately 19.6 billion cubic feet
equivalent (BCFE) net proved reserves (estimated by Netherland, Sewell and
Associates, Inc.), approximately 10,000 leasehold acres, several associated
drilling prospects and other workover opportunities. The properties are
currently producing 13,700 thousand cubic feet equivalent per day (MCFEPD),
with an average KCS working interest of 42.5%.
"This acquisition further expands our interests in the South Texas Wilcox
trend, which is a key focus area for the Company" stated James W. Christmas,
President and Chief Executive Officer of KCS Energy. "With this acquisition
and our recent drilling results we are raising our 2001 production guidance
for the second time this year. We are now forecasting working interest
production to be between 41-44 BCFE for the year, which is an increase of
6%-14% over our 2000 production levels. Estimated VPP production for the year
remains unchanged at 4-7 BCFE."
KCS is an independent energy company engaged in the acquisition
exploration and production of natural gas and crude oil with operations in the
Mid-Continent and Gulf Coast regions. The Company also purchases reserves
(priority rights to future delivery of oil and gas) through its Volumetric
Production Payment program. For more information on KCS Energy, Inc., please
visit the Company's web site at Http://www.kcsenergy.com .
To receive KCS' latest news and other corporate developments via fax at no
cost, please call 1-800-PRO-INFO. Use company code KCS. See also
Http://www.frbinc.com .
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Among the important factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are delays and difficulties in developing currently
owned properties, the failure of exploratory drilling to result in commercial
wells delays due to the limited availability of drilling equipment and
personnel, fluctuations in oil and gas prices, general economic conditions and
the risk factors detailed from time to time in the Company's periodic reports
and registration statements filed with the Securities and Exchange Commission.
SOURCE KCS Energy, Inc.
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Related links:
http://www.frbinc.com
http://www.kcsenergy.com
CONTACT:
William N. Hahne, Sr. VP & COO of KCS Energy,
Inc., 713-877-8006, or General Info, Marilynn Meek, or Media,
Dave Closs of The Financial Relations Board BSMG Worldwide,
212-445-8000
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