EQUITY OIL PURCHASES ADDITIONAL WORKING INTEREST IN RANGELY WEBER SAND UNIT
EQUITY OIL PURCHASES ADDITIONAL WORKING INTEREST IN
RANGELY WEBER SAND UNIT
SALT LAKE CITY, Nov. 14 /PRNewswire/ -- Equity Oil Company (NASDAQ: EQTY) today announced that it has purchased a 0.5 percent working interest in the Rangely Weber Sand Unit, an oil field located in Rio Blanco County, Colo., under an existing preferential right of purchase for $4.6 million.
The purchase will add 797,000 barrels of proved developed reserves and approximately 153 daily barrels of production to Equity's reserve and production base. Based on year-end 1990 proved developed oil reserves and production through the first nine months of 1991, this amounts to a 9.4 percent increase in proved developed oil reserves and an 8 percent increase in daily oil production. The effective date of the purchase is July 1, 1991, and will increase Equity's 1991 oil production by approximately 28,000 barrels.
The purchase increases Equity's total working interest in the Rangely Weber Sand Unit, which accounted for 65 percent of the company's net oil production in the first nine months of 1991, from 4.1 percent to 4.6 percent. The posted price of oil from the Rangely field realizes a premium of approximately $.75 per barrel over the West Texas Intermediate posting. The current posted price is $22 per barrel. One half of the purchase price will be financed from existing cash balances and one half will be financed through bank borrowings.
Equity Oil Company, headquartered in Salt Lake City, is an independent oil and gas exploration and development company with operations in nine western states and Canada. In 1990, Equity Oil ranked as the 39th largest U.S. independent based on proved oil and gas reserves.
/CONTACT: Fred H. Evans or Paul M. Dougan of Equity Oil, 801-521-3515, or Marisa A. Heine or Jennifer R. Wall of D.F. King & Co., 212-269-5550/
(EQTY) CO: Equity Oil Company; ST: Utah, Colorado IN: OIL SU: TNM CK-KW -- NY068 -- 4474 11/14/91 13:21 EST