Forcenergy Announces Signing of Purchase and Sale Agreement for the Acquisition of Stewart Petroleum Company and Related Interests in the West McArthur River Field, Cook Inlet, Alaska.MIAMI--(BUSINESS WIRE)--May 13, 1997-- Recent 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 Drilling Results Forcenergy Inc (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FGAS FGAS Federation of German American Societies (Rochester, New York) ) announced Tuesday that a definitive Purchase and Sale Agreement has been executed for the acquisition by Forcenergy of Stewart Petroleum Company's and other working interests in the West McArthur River Field, Cook Inlet Cook Inlet Inlet, Gulf of Alaska in the northern Pacific Ocean. Bounded by the Kenai Peninsula on the east, it extends northeast for 220 mi (350 km), narrowing from 80 to 9 mi (129 to 14 km). Anchorage is situated near its head. , Alaska. The acquisition, if completed, will be for an amount up to $23.25 million and will result in Forcenergy assuming operations for the West McArthur River Field. Proven reserves associated with acquisition, assuming 100% working interest is acquired, are approximately 2,973,100 barrels of oil. The West McArthur River Field is currently producing approximately 1,300 barrels of oil per day net to the 100% working interest. Forcenergy plans to implement a waterflood pressure maintenance program which is expected to stabilize production and increase proven reserves. Included in the acquisition is Stewart Petroleum's interest in six exploratory leases. Two of the exploratory leases (33% working interest) are associated with a recognized exploratory prospect with up to 100 million barrels gross unrisked potential. Stewart Petroleum Company is a debtor in possession debtor in possession n. in bankruptcy proceedings when a debtor has filed for the right to submit a plan for reorganization or refinancing under Chapter 11, and the debtor is allowed to continue to manage his/her/its business without an appointed trustee, that debtor having sought relief under Chapter 11 of the Bankruptcy Code. An order has been signed by the Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. authorizing the transaction. The acquisition is contingent upon certain production criteria and Forcenergy acquiring a minimum working and net revenue interest from Stewart Petroleum Company and other working interest owners. The Company also announced Tuesday the results of recent Gulf of Mexico drilling activities: High Island A-470 A successful exploratory well has been drilled on the Company's High Island A-470 lease block. The well has logged pay in one shallow and two deeper horizons. Forcenergy estimates that a net total of approximately 17.5 BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter has been added to proven reserves as a result of the well. The well is being drilled deeper to evaluate a remaining deeper exploratory zone. Forcenergy plans to install a small platform and process production from this discovery at its existing High Island A-467 facilities. Initial production from the discovery well is estimated to begin in early 1998 at net rates of 10 to 15 MMCFD of natural gas. South Marsh Island 136/137 Two unsuccessful exploitation wells have been drilled in the Company's SMI (1) (Storage Management Initiative) The initiative developed by the SNIA in 2003 to create a single standard interface for storage management technologies used by multiple vendors and networking communities. 136/137 complex utilizing the same wellbore. A third well is currently being drilled which also utilizes the same wellbore. Forcenergy plans to drill approximately four to six additional wells in the field during the next 12 months. Forcenergy Inc is an independent oil and gas company engaged in the development, exploration, acquisition and production of oil and natural gas properties. Certain statements in this news release regarding future expectations and plans for future drilling activities may be regarded as "forward looking statements" within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act. They are subject to various risks, such as financial market conditions, operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the Company's SEC filings, including the Annual Report and Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1995. Actual results may vary materially. CONTACT: Forcenergy Inc, Miami J. Russell Porter or Michael McNamara 305/856-8500 |
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