Universal Resources Corp., a subsidiary of Salt Lake-based Questar Corp., has reached an agreement in principle to purchase oil and gas properties in Oklahoma, Texas and Kansas from Petroleum Inc., Wichita, Kan.
Valued at $22.6 million, the acquisition includes producing and nonproducing properties in those states and consists of 14.5 billion cubic feet of gas and 1.3 million barrels of oil, along with significant undeveloped leaseholds and additional probable reserves, the company said.The purchase price was based on proven reserves verified by an independent reservoir engineer.
Petroleum Inc. retains working interests in certain Kansas properties and the west Texas properties and a net profits interest in the undeveloped acreage. PI remains an active company with ongoing exploration and production in southwestern Kansas and substantial exploration and production in Wyoming, Montana and North and South Dakota.
Gary L. Nordloh, president and chief executive officer of Questar's exploration and production companies, said the agreement will be effective retroactive to Nov. 1, 1993, subject to final purchase and sale agreements and associated adjustments.
Nordloh said the acquisition adds 33 percent to reserves owned by Universal Resources on Dec. 31, 1992, and would enhance the company's 1993 production and revenues.
The acquisition increases Questar's 1993 capital spending to a record $80 million, a figure that is expected to increase to $91 million in 1994.