Baseline Pays $96MM for S. TX Props, Gains Big 42B Proved

Baseline Oil & Gas Corp., Houston, (OTCBB: BOGA) has acquired producing properties in South Texas from Corpus Christi, Texas-based DSX Energy Ltd. LLP, Kebo Oil & Gas Inc., Portland, Texas, and other related parties for $96.6 million. The assets include 100% working interest in 12 wells on assets offset to Blessing Field in Matagorda County. The field has established production in five separate fault blocks with proved and probable reserves in 20 different sands. Proved reserves are 42.2 billion cubic feet equivalent, including 8.1 billion proved developed producing, 13 billion proved developed nonproducing, and 21.1 billion proved undeveloped. Approximately 77% of total proved is gas. An additional 38 billion is identified as probable. Baseline will be operator.