Black Stone Completes Large Acquisition of Diversified Mineral Package.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Nov. 6, 2002

Black Stone Minerals Company, L.P. announced that it has completed the acquisition of producing and non-producing fee minerals from Ocean Energy Inc. (NYSE:OEI), an independent oil and gas company based in Houston, for approximately $61 million.

The properties are located in sixteen states -- primarily in Texas, Oklahoma and Louisiana -- and include royalty and overriding royalty interests in approximately 3,000 wells with net daily production of approximately 1,500 barrels per day on an oil equivalent basis. Black Stone now owns interests covering virtually all of the significant onshore exploration basins in the lower 48 states, and interests in approximately 10,000 wells.

"This acquisition is a major step forward for Black Stone," said Thomas L. Carter, Jr. president. "We like the Ocean minerals for their geographic diversity, solid production base and acreage position."

Mr. Carter noted that the Ocean acquisition would be the first investment of new mineral acquisition fund, Black Stone Acquisitions Partners I, a limited partnership to be managed by Black Stone Minerals. The fund has received over $100 million in commitments from institutional and other private investors. "This additional capital will greatly increase our ability to respond to opportunities in the marketplace, and on a potentially larger scale," he said.

From its Houston base, Black Stone has been increasingly active in acquiring large fee mineral properties with associated producing royalty. Since 1999, it has completed seven acquisitions representing an investment of over $161 million and increased its interests in fee mineral acre position from just over 600,000 gross acres in two states to approximately 5,000,000 gross acres in 40 states today. The company believes it is one of the largest privately held fee mineral owners in the country.