Hess Corporation (ticker: HES, exchange: New York Stock Exchange (.N))
News Release -
Amerada Hess To Acquire Gulf Coast Natural Gas Reserves
Amerada Hess Corporation announced today that it had reached agreement to purchase
substantially all of the exploration and production assets of LLOG Exploration
Company for $750 million after closing adjustments. The properties are located
on the Gulf of Mexico shelf and onshore South Louisiana. Production currently
is averaging approximately 200,000 Mcf of natural gas equivalent per day and is
expected to rise to 250,000 Mcf of natural gas equivalent per day early in 2003.
Estimated proven reserves are 360 Bcf of natural gas equivalent. This transaction
is expected to close early in the second quarter of 2001.
Bob Strode, Senior Vice President of Amerada Hess, said that "we are purchasing
high-quality natural gas and crude oil reserves in the prolific offshore and onshore
Gulf Coast of the United States. These properties provide impressive production
growth and there is significant upside in reserves. The transaction meets our
financial criteria and offers attractive financial returns."
Contact: Amerada Hess Corporation.......C.T. Tursi (212) 536-8593