Bellwether Exploration Completes Last Phase of Non-Core Oil and Gas Property Divestiture Program.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Feb. 2, 2001 Bellwether Bellwether A leading indicator of trends. Notes: A bellwether stock is a stock that is used to gauge the performance of the market in general. General Motors was an example of a bellwether stock, hence the saying "What's good for GM is good for America. Exploration Company (Nasdaq:BELW) announced today the completion of the last phase of its divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). program with the sale of approximately 4 MMBOE MMBOE Million Barrels of Oil Equivalent (energy and petroleum industry) of non-core oil and gas properties for $27 million. Proceeds from the transaction will be used to pay down company debt. Today's announced sale will eliminate approximately 450 wells, while reducing production by only 2,293 net BOE BOE Based on Experience BOE Board of Education BOE BoletÃn Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip per day. Bellwether is also in the final stages of negotiations for the sale of a gas plant in West Texas, and is expected to close within 30 days. The total divestiture program which was initiated last fall, included overall sales of approximately 7.3 MMBOE for $49 million, and will represent annual cost savings of approximately $1 million in associated G&A expenses. "This sale, along with the prior property sale transactions, will complete the divestiture phase of our strategy that we laid out earlier this fall," commented Doug Manner, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our balance sheet will be improved and will provide the ability to re-deploy, through acquisition, into new, operated assets in our core areas," added Manner. In addition to today's announced property sale, Bellwether continues to move forward with its plans to acquire Bargo Energy Company. The SEC Form S-4 Registration Statement was filed on Feb. 1, 2001. Additionally, new budgets are being honed and asset integration plans are proceeding. Bellwether Exploration Company is an independent oil and gas exploration and production company headquartered in Houston, with oil and gas properties located in three core areas: the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east both onshore and offshore, Southeast New Mexico/West Texas and Ecuador. This news release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 assurances that forecasted results will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are referenced in the Company's annual report and 10-K for year-end 1999 and current reports and registration statements filed with the Securities and Exchange Commission. |
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