Forcenergy announces acquisition of Stewart Petroleum Co. and related interests in the West McArthur River Field, Cook Inlet, Alaska.
Total working interests in the West McArthur River Field acquired by Forcenergy amounted to 97.75% with a corresponding 72.75% net revenue interest. The closing price adjusted for the Jan. 1, 1997 effective date and other items provided for in the Purchase and Sale Agreement was $18,743,447. As a result of the acquisition, Forcenergy will assume operations for the West McArthur River Field. Proven reserves as of June 5, 1997 associated with the interests acquired by Forcenergy, are approximately 2,641,800 barrels of oil. The West McArthur River Field is currently producing approximately 1,100 barrels of oil per day net to the interest acquired by Forcenergy.
The following comments were made by Stig Wennerstrom, Forcenergy's president and CEO: "Through this acquisition, Forcenergy will establish an operating presence in the Cook Inlet area. We plan to implement a waterflood pressure maintenance program, which is expected to stabilize production and increase proven reserves. An important part of this 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. We have also identified leads on several of the other exploratory leases."
Forcenergy Inc is an independent oil and gas company engaged in the development, exploration, acquisition and production of oil and natural gas properties. -0-
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 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 for the year ended Dec. 31, 1996. Actual results may vary materially.
CONTACT: Forcenergy Inc
J. Russell Porter
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|Date:||Jun 5, 1997|
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