National Energy Group Acquires Additional Interests in East Bayou Sorrel Area

National Energy Group, Inc. announced the closure of its purchase of additional interests in the East Bayou Sorrel Area, Iberville Parish, Louisiana, from Fortune National Resources Corporation for $4,695,000. The acquisition added 432,000 barrels of oil and 551,000 mcf of natural gas to its proven reserves as of March 31, 1998. The Company estimates this addition will enhance its exploration and development drilling program in the area, following the completion of a 3-D seismic survey.

Key Takeaways:

• National Energy Group acquired additional interests in 300 gross (35.5 net) developed acres and 625 gross (80.4 net) undeveloped acres in the East Bayou Sorrel Area.
• The Company estimates the acquisition added 432,000 barrels of oil and 551,000 mcf of natural gas to its proven reserves as of March 31, 1998.
• National Energy Group is the operator of its properties in the East Bayou Sorrel Area.
• The Company anticipates an active exploration and development drilling program in the East Bayou Sorrel Area upon completion of interpretation of 3-D seismic survey.
• National Energy Group's recently completed 3-D seismic survey covers the acquired acreage.
• Fortune National Resources Corporation sold the interests to National Energy Group for $4,695,000.
• This acquisition reflects the Company's strategic focus on expanding its presence in the East Bayou Sorrel Area.

Statistics:

• The acquisition added 432,000 barrels of oil to National Energy Group's proven reserves.
• The acquisition added 551,000 mcf of natural gas to National Energy Group's proven reserves.
• The Company acquired 300 gross (35.5 net) developed acres in the East Bayou Sorrel Area.
• The Company acquired an additional 625 gross (80.4 net) undeveloped acres in the East Bayou Sorrel Area.
• National Energy Group purchased the interests from Fortune National Resources Corporation for $4,695,000.
• The acquisition was completed on March 31, 1998.

Sources:

• PR Newswire, "National Energy Group, Inc. Announces Completion of Acquisition" (March 31, 1998)