3TEC Energy Corporation Announces Closing of Significant East Texas Property Acquisition.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--June 5, 2000

3TEC Energy Corporation ("3TEC") (Nasdaq:TTEN) announced today it has completed the acquisition of properties located in East Texas from undisclosed private sellers. The acquisition has an adjusted purchase price of $55 million and an effective date of Jan. 1, 2000.

The properties are located in the Glenwood and White Oak fields in Gregg and Upshur Counties, Texas, and produce from the Cotton Valley formation. As of March 31, 2000, 3TEC estimates that the acquired properties had total net proved reserves of 73.1 Bcfe with a PV 10 value of $82 million, using constant pricing of $2.82 per Mcf for gas and $26.28 per Bbl. for oil. The estimated reserves are 92% gas on an equivalent basis, with current net daily production of approximately 10.0 Mmcf of gas and 150 Bbls. of oil. Approximately 51% of the reserves are classified as proved producing. 3TEC has identified over 100 proved undeveloped locations and plans an active drilling program on the properties.

This acquisition will increase 3TEC's reserves to over 300 Bcfe and increases daily production to approximately 70 Mmcfe.

The acquisition was financed under 3TEC's $250 million credit facility with Bank One, Texas, N.A., as administrative agent, Bank of Montreal, as syndication agent and Union Bank of California, Wells Fargo Bank, CIBC Inc. and Bank of Nova Scotia as participating lenders.

3TEC Energy Corporation is engaged in the acquisition, development, production and exploration of oil and natural gas, with properties geographically concentrated in East Texas and the Gulf Coast regions. 3TEC also owns significant properties in the Permian and San Juan basins and in the Mid-Continent region.

The information contained in this press release may contain projections, estimates and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, environmental risks, drilling, producing and operating risks, risks related to exploration and development, uncertainties about the estimates of reserves, government regulation, competition and the ability of the company to meet its stated business goals.