Prize Energy Sells Fee Minerals for $32 Million.GRAPEVINE, Texas--(BUSINESS WIRE)--Aug. 16, 1999-- Prize Energy Corp. ("Prize") announces the completion of the sale of its producing mineral and mineral fee acreage to Black Stone Mineral Company, L.P. for $32 million effective July 1, 1999. The minerals sold were acquired from Pioneer Natural Resources Company ("Pioneer") (NYSE NYSE See: New York Stock Exchange :PXD PXD Powder X-ray Diffraction PXD Post Exercise Discussion PXD Physical Device Driver PXD Pixel Data ). In addition, Prize retains a mineral option interest in approximately 5 million acres located throughout the central and western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . This mineral option interest is primarily related to acreage originally associated with the Santa Fe Railroad Santa Fe Railroad, former U.S. railroad, chartered in 1863 as the Atchison, Topeka, and Santa Fe RR; opened to traffic in 1864. Construction continued, and in 1880 it reached Santa Fe, N.Mex.; the following year the railroad connected with the Southern Pacific RR. , which had been acquired by Pioneer through its Bridge acquisition in 1994. Lon C. Kile, President and COO said, "The sale of the minerals substantially reduces Prize's debt incurred as a result of the Pioneer acquisition and enables the Company to focus on the exploitation opportunities associated with the properties acquired from Pioneer. Next year, we anticipate capital expenditures to be approximately $40 million." Philip B. Smith, Chairman 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. stated, "Prize has a focused disciplined growth strategy concentrated on acquisition and exploitation opportunities that enhance asset value through increases in oil and gas production, reserves and cash flow." Prize is among the nation's mid-size independent exploration and production companies, with total 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. equivalent to 73 million barrels of oil or over 432 billion cubic feet of natural gas. As of July 1, 1999, Prize had total proved reserves of approximately 31.6 million barrels of crude oil and natural gas liquids and 248 billion cubic feet of natural gas. About 83% of the Company's total proved reserves are proved developed. The reserve mix of the Company is 57% natural gas and 43% crude oil and liquids. In addition, the reserve life index is 12 years. Prize Energy Corp. is a privately owned company engaged in oil and gas property acquisitions, exploitation and production. The Company owns interest in over 2,500 producing oil and gas properties located primarily in Texas, Oklahoma, Louisiana and New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). . |
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