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SOCO EXPANDS WATTENBERG DRILLING

 SOCO EXPANDS WATTENBERG DRILLING
 FORT WORTH, Texas, April 1 /PRNewswire/ -- Snyder Oil Corporation


("SOCO") (NYSE: SNY) announced today that it had entered into an agreement which will substantially expand the scope of its 1992 development drilling in the Wattenberg Field of Colorado. The letter of intent covers the farmout of 71 locations from a major oil company. Pursuant to the agreement, SOCO plans to drill the great majority of these wells in 1992. Approximately 65 percent of the wells will be drilled on acreage previously acquired, but will extend SOCO's ownership into the Sussex and "J" formations. The prior purchase was limited to the Codell and Niobrara sands. The remaining wells will add to SOCO's approximately 50,000 net acre position in the Field. A limited number of the wells will test the deeper Dakota formation.
 In February 1991, SOCO initiated a 500 well drilling program in Wattenberg. To date, 150 of those wells have been placed on production. A further 100 wells have been scheduled for drilling in the remainder of 1992. With the execution of this farmout agreement, which should occur within 30 days, SOCO's 1992 drilling schedule in the Field will accelerate. Because the farmout involves the transfer of a portion of the Section 29 tax credits generated by the new production to the farmor, the wells must be drilled by year end. The addition of this drilling will bring SOCO's 1992 Wattenberg drilling to a total of 175 wells and 20 recompletions, having a total cost of almost $50 million.
 Based on preliminary estimates, the farmout has the potential of adding almost five million barrels of oil equivalents to SOCO's proved reserves at a fully developed cost of only $3 per barrel. This estimate excludes reserves which may be developed in the Dakota formation.
 SOCO is engaged in the production, development, acquisition and exploration of oil and gas properties and in natural gas processing and transportation. The company's common and convertible preferred shares are traded on the New York Stock Exchange under the symbols "SNY" and "SNY Pr".
 -0- 4/1/92
 /CONTACT: Patti J. Irwin, vice president of Snyder Oil, 817-882-5902/
 (SNY) CO: Snyder Oil Corporation ST: Texas, Colorado IN: OIL SU:


SH -- NY062 -- 3905 04/01/92 13:19 EST
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Publication:PR Newswire
Date:Apr 1, 1992
Words:376
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