Printer Friendly

AMERICAN EXPLORATION COMPANY ANNOUNCES SALE OF CANADIAN PROPERTIES

 HOUSTON, July 9 /PRNewswire/ -- American Exploration Company (AMEX: AX) announced today that it has sold its remaining oil and gas interests in Alberta, Canada in two transactions. In the larger transaction, American sold its Canadian Foothills properties to Equitable Resources, Inc., for $18 million (all amounts in U.S. funds). American has retained a 4 percent overriding royalty interest in these properties. Separately, American completed the sale of various property interests to Canadian Conquest Exploration, Inc., for approximately $900,000.
 At year end 1992, the SEC 10 present value of the reserves being sold was approximately $19 million (10 percent of American's total year end SEC 10 reserve value). Current production from the properties is approximately 8,500 Mcf of gas per day net to American.
 Commenting on the sale, Mark Andrews, Chairman and CEO said, "The sale of these properties represents an important turning point for the company. Over the past year, American's primary focus has been on strengthening the company's financial position and operating capabilities. In recent weeks, American has taken advantage of a stronger market for Canadian properties and gas contract settlements to raise over $42 million of net cash. As a result, bank debt has been reduced to a current level of $22 million, down from $54 million at year end and a peak level of $112 million in 1991. At the same time, total long-term debt has been reduced from $170 million in 1991 to $82 million currently.
 "Having completed these key transactions, American has become a focused company in a much stronger financial position and is now shifting the majority of its efforts to the profitable expansion of its domestic reserves and production. American is currently moving forward with a number of high potential domestic development and exploitation projects which, based on the results of wells drilled so far in 1993, are expected to add significant reserves and cash flow in future periods."
 American Exploration Company is an independent oil and gas company with operations primarily in Texas, Louisiana, and Oklahoma. The company also has interests in international concessions in Tunisia and the Sultanate of Oman. American's common stock is traded on the American Stock Exchange under the symbol AX.
 -0- 7/9/93
 /CONTACT: Frank Murphy of American Exploration Company, 212-230-0344/
 (AX)


CO: American Exploration Company ST: Texas, Alberta IN: OIL SU:

LR-OS -- NY022 -- 9841 07/09/93 10:33 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 9, 1993
Words:398
Previous Article:BIOSPECIFICS TECHNOLOGIES ANNOUNCES LICENSEE'S DOUBLING OF SALES
Next Article:DUFF & PHELPS: ILLINOIS POWER COMPANY $300 MILLION DEBT SECURITIES RATED
Topics:


Related Articles
AMERICAN NATIONAL PETROLEUM COMPANY ANNOUNCES SALE OF MATHERS RANCH
AMERICAN EXPLORATION COMPANY INCREASES OWNERSHIP OF SUBSIDIARY AND REACHES AGREEMENT TO PREPAY DEBT
AMERICAN EXPLORATION ANNOUNCES SALE OF CANADIAN CONQUEST SUBSIDIARY
ANADARKO SELLS NON-STRATEGIC PROPERTIES TOTALING $107 MILLION
CANADIAN 88 ENERGY CORP. ANNOUNCES MAJOR PRODUCTION, GAS PLANT & PIPELINE ACQUISITION
WAINOCO ANNOUNCES CORPORATE OFFICE REORGANIZATION
Amoco's $1.9 Billion Exploration and Production Divestment Program In North America Focuses Portfolio on Top Oil & Natural Gas Producing Areas
Devon Energy and Northstar Energy Reveal Additional Merger Details
Ocean Energy Closes Sale of Canadian Subsidiary for $63 Million.
PanCanadian sells Pelican Lake property to Canadian Natural Resources.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters