ARCH PETROLEUM ANNOUNCES PROPERTY ACQUISITIONS
ARCH PETROLEUM ANNOUNCES PROPERTY ACQUISITIONS FORT WORTH, Texas, March 2 /PRNewswire/ -- Arch Petroleum Inc.
(NASDAQ: ARCH) announced today it had closed three separate transactions in which it acquired producing oil and gas properties for a total of $8.9 million.
The producing properties, located in three multi-pay fields in Winkler and Reagan Counties in West Texas and Wise and Jack Counties in North Texas, include interests in 168 gross wells (49 net) under 26,400 gross acres (4,800 net). Interests acquired include both operated and non-operated working interests. A portion of the acquisition includes several 100 percent-owned wells in the Keystone Ellenburger Field as well as a 6 percent working interest in the South Keystone Ellenburger Unit. The company also reported that a hearing before the Texas Railroad Commission was scheduled beginning March 31 to consider a proposal to change the field rules for the Keystone Ellenburger Field. Larry Kalas, president of Arch, stated, "The acquisitions have a significant impact on the realization of one of our short-term goals, the replacement of production sold during 1991. These transactions successfully completed the like-kind property exchange initiated with the 1991 property sale, deferring over $2 million in federal income tax. The properties also offer significant exploitation potential." Based upon preliminary estimates, the acquisition cost per equivalent barrel of oil will be less than $4.00. Kalas also said that Arch would retain an independent petroleum engineering consultant to perform a comprehensive study of the properties which would serve as the basis for publishing reserve estimates. Arch Petroleum Inc. is an independent oil and gas exploration and production company headquartered in Fort Worth, Texas, with interests in producing properties in Texas, New Mexico, Oklahoma, Louisiana and North Dakota. Arch Production Company is its wholly-owned subsidiary. -0- 3/2/92 /CONTACT: Randall W. Scroggins, vice president of Arch Petroleum, 817-332-9209 or 800-772-8558/ (ARCH) CO: Arch Petroleum Inc. ST: Texas IN: OIL SU: TNM
KD -- NY070 -- 4039 03/02/92 14:05 EST
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|Date:||Mar 2, 1992|
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