Spirit Energy 76 reaches definitive agreement on sale of Oklahoma oil and gas assets
Sugar Land, Texas, November 25, 1998 -- Spirit Energy 76, Unocal Corporation's Lower 48 exploration and production unit, today said that it has reached a definitive agreement to sell substantially all of its oil and gas assets in Oklahoma to Magnum Hunter Production, Inc., for approximately $36 million in cash.
Approximately 115,300 net leasehold acres currently producing about 16.2 million cubic feet of natural gas equivalent (MMCFE) per day are included in the sale, in addition to some acreage in the Texas Panhandle. Estimated reserves were not disclosed.
The effective date of the transaction will be Dec. 31, 1998, and closing is expected by year-end. Unocal expects to record a gain 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.
Spirit Energy 76 has net production of about 180,000 BOE per day and operates 330 offshore platforms with 2,700 active wells in 355 fields in the Gulf of Mexico region. The unit employs approximately 1,300 people.
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: November 1998