Nuevo Energy Acquires 100 Bcfe of Natural Gas in West Texas.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Sept. 18, 2002 Nuevo Energy Company (NYSE NYSE See: New York Stock Exchange :NEV NEV Nevada (old style US postal abbreviation) NEV Neighborhood Electric Vehicle NEV Nevis, Leeward Islands, Saint Kitts And Nevis (Airport Code) NEV Network Enhancement Vehicle NEV Network Event Viewer ) today announced the acquisition of Athanor Ath´a`nor n. 1. A digesting furnace, formerly used by alchemists. It was so constructed as to maintain uniform and durable heat. Noun 1. Resources, Inc. (Athanor) which is a privately owned company funded primarily by Yorktown Energy Partners. Nuevo acquired approximately 100 Bcfe of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. (97% natural gas and associated liquids) for 2 million shares of Nuevo common stock, approximately $62 million in cash and the assumption of $20 million of debt. "This acquisition marks the beginning of the second phase of Nuevo's corporate transformation," commented Jim Payne The name Jim Payne may mean:
"Athanor's stockholders agreed to take Nuevo's common stock as part of the purchase consideration because we believe in the Company's articulated business strategy and the stock's upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar ," stated Bryan Lawrence, Partner of Yorktown Energy Partners. "We look forward to becoming stockholders of Nuevo." Athanor Assets The Pakenham Field, located in Terrell County, Texas Terrell County is a county located in the U.S. state of Texas. In 2000, its population was 1,081. Its county seat is Sanderson6. The county was named for Alexander W. Terrell, a Texas state senator. Geography According to the U.S. , accounts for essentially all of Athanor's production. Current production is from the Wolfcamp, Thrusted Wolfcamp, and Strawn formations. In the fourth quarter 2002, net production is expected to average approximately 20 million cubic feet of natural gas equivalent per day (MMcfed). While approximately 80% of current production is from the shallow Wolfcamp formation, a substantial portion of the future development will be directed toward the deeper, more prolific zones. J.P. Morgan Securities Inc. acted as Nuevo's financial advisor in this transaction. Conference Call and Web Cast Nuevo will host a conference call to discuss this acquisition on September 19th at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). There will also be a simultaneous web cast of the conference call which can be accessed from Nuevo's web site at www.nuevoenergy.com Nuevo Energy Company is a Houston, Texas-based company primarily engaged in the acquisition, exploitation, development, production, and exploration of crude oil and natural gas. Nuevo's domestic properties are located onshore and offshore California, and West Texas. Nuevo is the largest independent producer of oil and gas in California. The Company's international properties are located offshore the Republic of Congo in West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. and onshore the Republic of Tunisia in North Africa. To learn more about Nuevo, please refer to the Company's internet site at http://www.nuevoenergy.com. This press release includes "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. All statements other than statements of historical facts included in this press release, including without limitation, estimated quantities and net present value of reserves, estimated production volumes, business strategies, plans and objectives of management of the Company for future operations and covenant compliance and capital expenditures are forward-looking statements. Although the Company believes that the assumptions upon which such forward-looking statements are based are reasonable, it can give no assurances that such assumptions will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations ("Cautionary Statements") and projections include volatility in oil and gas prices, operating risks, the risks associated with reserve replacement, competition from other companies and other factors set forth in the Company's Annual Report on 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. and other filings made with the SEC and incorporated herein. All subsequent written and oral forward-looking statements and projections attributable to the Company or to persons acting on its behalf are expressly qualified by the Cautionary Statements. |
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