Spirit Energy 76 completes sale of Oklahoma oil and gas assets to Magnum Hunter
Sugar Land, Texas, December 31, 1998 -- Spirit Energy 76, Unocal Corporation's Lower 48 exploration and production unit, today said that it has closed the previously announced sale of substantially all of its oil and gas assets in Oklahoma to Magnum Hunter Production, Inc., a wholly owned subsidiary of Magnum Hunter Resources, Inc. (ASE: MHR) for approximately $34 million in cash. An additional $3 million is expected in January from other parties exercising preferential rights, bringing the total value of the transaction to approximately $37 million.
Approximately 115,300 net leasehold acres, which includes some acreage in the Texas Panhandle, are included in the sale. These properties currently produce about 16.2 million cubic feet of natural gas equivalent per day. Estimated reserves were not disclosed.
The effective date of the transaction is Dec. 31, 1998, and Unocal will record a gain on the sale in the fourth quarter.
Spirit Energy 76 said that the sale is consistent with its recent efforts to focus more of its primary exploration and production activities onshore in Texas and the Gulf Coast region and offshore in the Gulf of Mexico.
Unocal is one of the world's largest independent oil and gas exploration and production companies, with major resource development, power plant and pipeline projects in Asia, the U.S. Gulf of Mexico region and Latin America.
Forward-looking statements regarding exploration activities, future production, drilling success and capital spending in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially.
Updated: December 1998