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SNYDER OIL FORMS VENTURE WITH UPRC

 FORT WORTH, Texas, Dec. 8 /PRNewswire/ -- Snyder Oil Corporation (NYSE: SNY) ("SOCO") announced today that it had entered into a letter of intent with Union Pacific Resources Corporation (NYSE: UNP) ("UPRC") covering the development of a significant portion of UPRC's not previously committed undeveloped acreage in the greater Wattenberg area of Colorado. Under the proposed venture, SOCO will gain the right to drill on an estimated 1,800 potential locations in 72 townships. SOCO will have up to six years to develop the acreage. UPRC will retain a royalty and the right to join SOCO as a 50 percent working interest owner in each well drilled. SOCO has committed to drill a minimum of 300 wells on the properties within the first three years. The agreement virtually doubles SOCO's inventory of potential locations in Wattenberg and could lead to a substantial increase in SOCO's overall drilling budget in the 1994-1999 period. The transaction is subject to final documentation and approval by the Boards of Directors of both companies.
 As compensation for committing its unique acreage position to the venture, UPRC is being granted warrants to purchase two million shares of SOCO's common stock. The warrants are exercisable at prices of $25-$27 per share. The exercise prices on the warrants may be reduced based on SOCO's stock price one year after closing. The warrants will expire in three to four years from date of grant. If exercised in full, the warrants would make UPRC SOCO's largest single stockholder.
 In commenting on the transaction, John C. Snyder, SOCO's chairman, noted that "An association with a company such as UPRC and the dramatic expansion of our inventory of prospects in Wattenberg provides us a unique opportunity to continue to profitably expand SOCO's asset base in our principal operating area. Over the past year, SOCO has held extensive discussions on similar transactions with a number of large companies. UPRC's objective is to maximize the value of their extensive mineral holdings while retaining rights to participate in the upside potential of these properties. We look forward to working with them."
 SOCO is engaged in the production, development, acquisition and exploration of oil and gas properties and in natural gas processing and transportation. The company's common and convertible preferred shares are traded on the New York Stock Exchange under the symbols "SNY," "SNY Pr" and "SNY Pr A."
 -0- 12/8/93
 /CONTACT: Diana K. Ten Eyck, vice president of Snyder Oil 303-592-8538/
 (SNY UNP)


CO: Snyder Oil Corporation ST: Texas IN: OIL SU: JVN

SP -- NY095 -- 1892 12/08/93 16:02 EST
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Publication:PR Newswire
Date:Dec 8, 1993
Words:429
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