Plains To Acquire Colorado Assets

Plains Exploration & Production Co., Houston, (NYSE: PXP) plans to acquire all the interests in producing properties and midstream assets in Colorado from Denver-based Laramie Energy LLC for $900 million in cash and approximately $46 million in stock in a total deal valued at $946 million. The assets include more than 200 producing wells on 60,000 gross acres (55,000 net) and more than 3,000 additional potential drilling locations in the Mesaverde section of the Piceance Basin. The assets also include a 25% interest in the Collbran Valley gathering system. Production is approximately 6,000 barrels of oil equivalent per day (97% gas). Proved reserves are approximately 64 million barrels equivalent and proved, probable and possible reserves are 359 million barrels.