Printer Friendly

NAHAMA & WEAGANT PURCHASES ALL BENTON OIL AND GAS PROPERTIES IN CALIFORNIA

 NAHAMA & WEAGANT PURCHASES ALL
 BENTON OIL AND GAS PROPERTIES IN CALIFORNIA
 BAKERSFIELD, Calif., July 30 /PRNewswire/ -- Nahama & Weagant Energy Company (NASDAQ: NAWE) announced it has reached a tentative agreement with Benton Oil & Gas Company to purchase all of Benton's California oil and gas properties for $2.5 million in cash, effective July 1, 1992, subject to appropriate due diligence by NAWE. The purchase includes approximately 4 billion cubic feet of proved developed gas reserves in the Sacramento Valley of Northern California and 700,000 barrels of proved oil reserves, primarily located in the Round Mountain oil field in the San Joaquin Valley, near Bakersfield, Calif.
 The gas wells are currently producing an aggregate of approximately 3.8 million cubic feet of gas per day, net of royalties, which is being sold under contract to Pacific Gas & Electric Company for $1.47 per Mcf (thousand cubic feet of gas), which price is redetermined annually on May 1. The current oil production from these properties is insignificant; however, NAWE, which already owns approximately 1.5 million barrels of oil at Round Mountain, and its partners, plans to develop a cogeneration/enhanced oil recovery project in the field. If implemented, the project could add significant value and recoverable reserves to the field.
 NAWE expects to retain approximately 72 percent of the purchased properties, with John Hancock Mutual Life Insurance Company (John Hancock) purchasing the remaining interest from NAWE through its interest in a limited partnership in which John Hancock is the sole limited partner and NAWE is the sole general partner. The company expects to utilize its credit line with Canadian Imperial Bank of Commerce to fund its share of the purchase price. "This is a situation where we have again taken advantage of another opportunity created by a company changing its focus from domestic operations in the U.S. or in California," said NAWE's President Rodney Nahama. "We see a number of similar situations on the horizon and we'll continue to pursue them," he said.
 The company believes there is also additional development drilling potential in certain of the purchased properties in the Sacramento area.
 Based in Bakersfield, Calif., the company is primarily engaged in exploring for, developing and selling natural gas and to a lesser extent, crude oil, primarily in California and Oregon
 -0- 7/30/92
 /CONTACT: Denis Fitzpatrick of Nahama & Weagant, 805-323-9075, or Sam Witchel of Scharff, Witchel & Co., 212-983-1060, for Nahama & Weagant/
 (NAWE) CO: Nahama & Weagant Energy Co. ST: California IN: OIL SU: TNM


KD-SB -- NY042 -- 5055 07/30/92 11:36 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 30, 1992
Words:425
Previous Article:UTILICORP ANNOUNCES NEW ZEALAND JOINT VENTURE
Next Article:FLEET $750 MILLION SHELF DEBT RATED 'A/A-' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:


Related Articles
NAHAMA & WEAGANT ENERGY ANNOUNCES THE DISCOVERY OF NEW GAS FIELD
NAHAMA & WEAGANT WILL EMPHASIZE ENHANCING GAS RESERVE ACQUISITIONS
NAHAMA & WEAGANT ENERGY COMPANY ANNOUNCES A SUCCESSFUL DEVELOPMENT WELL
NAHAMA & WEAGANT ENERGY REPORTS RESULTS
NAHAMA & WEAGANT ENGAGES RAUSCHER PIERCE REFSNES TO ADVISE ON ACQUISITION SEARCH
NAHAMA & WEAGANT ENERGY COMPANY ANNOUNCES TWO GAS DISCOVERIES IN OREGON
NAHAMA & WEAGANT ENERGY COMPANY ANNOUNCES SIGNIFICANT INCREASES IN SECOND QUARTER EARNINGS AND CASH FLOW
BENTON OIL AND GAS AND TEXACO SUCCESSFULLY COMPLETE SECOND GAS WELL AT RABBIT ISLAND FIELD
BENTON OIL AND GAS CO. ANNOUNCES FILING OF EXCHANGE OFFER
Benton Oil And Gas Company Completes Acquisition of Crestone Energy Corporation

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