Mitchell Energy & Development Corp. Acquires Lake Creek Field

Mitchell Energy & Development Corp., a large independent energy producer, has expanded its presence in the Pinehurst area of Montgomery County, Texas, with the acquisition of a 100 percent working interest in the Lake Creek Field from Mobil, Amoco, and Amerada Hess for $26 million. This strategic purchase includes 32 oil and gas wells, gross leaseholdings of 2,773 acres, and associated production and gas processing equipment. The acquisition complements Mitchell's existing operations in the area, with the Lake Creek Field located adjacent to its Pinehurst Field, which has seen a 16 million cubic feet per day increase in gas production over the past five years.

Key Takeaways:

• Mitchell Energy & Development Corp. purchases 100% working interest in Lake Creek Field for $26 million.
• The acquisition includes 32 oil and gas wells, 2,773 acres of gross leaseholdings, and associated production and gas processing equipment.
• The Lake Creek Field adjoins Mitchell's existing Pinehurst Field in Montgomery County, Texas, increasing the company's leasehold interest in the area to 11,000 acres.
• Chairman George P. Mitchell aims to improve profitability from core-area operations by pursuing strategically positioned acquisitions like Lake Creek.
• Mitchell Energy & Development Corp. plans to utilize the same technology and completion techniques that have been successful at Pinehurst to develop the Lake Creek Field.
• The acquisition is seen as an excellent complement to existing operations, leveraging the company's knowledge of the geology and existing infrastructure.
• Mitchell Energy & Development Corp. expects to grow oil and gas volumes in the area quickly through drilling and recompletion opportunities.
• The company has been actively developing Wilcox sand reservoirs in the area using advanced fracturing technology, yielding significant production results.

Statistics:

• The Lake Creek Field is currently producing 5 million cubic feet of gas and 300 barrels of oil per day from 19 wells.
• Mitchell's Pinehurst Field produces 20 million cubic feet of gas and 500 barrels of oil per day from 21 wells.
• Total production from Pinehurst and Lake Creek Fields amounts to 182 billion cubic feet of gas and 18 million barrels of oil to date.
• The Pinehurst Field has seen a 16 million cubic feet per day increase in gas production over the past five years.

Sources:

• Mitchell Energy & Development Corp. press release, dated September 18, 1995.
• [Brian Engel, 713-377-6161, or Anne Pearson, 713-377-5661, both of Mitchell Energy & Development Corp.]