KCS Energy, Inc. Acquires Additional Gulf Coast Reserves Through Its Volumetric Production Payment Program;
Will Participate in Development and Exploration Program
HOUSTON, Nov. 22 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today announced it has entered into agreements to acquire 8.5 billion cubic feet equivalent (Bcfe) of proved oil and gas reserves from privately held, Houston- based ATP Oil & Gas Corporation. The purchase was made in connection with KCS' volumetric production payment program, under which it acquired defined nonoperating, overriding royalty interests. KCS' reserves will not be burdened by operating costs throughout the delivery period.
The reserves are from wells located on five of ATP's properties located in the onshore and offshore Gulf Coast area and consist of 7.4 Bcf of natural gas and 188,000 barrels of crude oil, 95% of which are expected to be delivered by year-end 1998. Deliveries attributable to KCS' acquired interest are currently 6,000 Mcf per day and work is underway to increase that level of production prior to year end.
KCS Energy President and Chief Executive Officer James W. Christmas said, "We are pleased to be able to join with ATP Oil & Gas, which has a demonstrated track record of success in the oil and gas industry, in the development of its current and future properties. This transaction is a hybrid of our typical volumetric production payment in that KCS will share directly in the upside resulting from further development of ATP's properties." The agreements give KCS the right to participate in the ongoing and future development of certain other ATP properties. In addition to the development rights, KCS will receive rights to participate in the exploration of certain joint-venture ATP properties.
KCS is an independent energy company primarily engaged in the acquisition, exploration, development and production of natural gas and crude oil. The Company also operates natural gas transportation and marketing businesses.
SOURCE KCS Energy, Inc.
/CONTACT: Henry A. Jurand, VP & CFO of KCS Energy, Inc., 908-632-1770; or General Info.: Marianne Stewart, Analyst Info.: Christina Howard, or Media Info.: Judith Sylk-Siegel, all of The Financial Relations Board, 212-661-8030/
CO: KCS Energy, Inc. ST: Texas IN: OIL SU: TNM
DC -- NYF057 -- 5886 11/22/96 13:24 EST http://www.prnewswire.com
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|Date:||Nov 22, 1996|
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