2008-09-02-2008-07-01

To buy 6%-100% WI in 10 fields in Permian Basin, NM, TX, gaining 60 Bcfe proved, 1,000 BOE/d, 3.5 MMcf/d.

An undisclosed buyer plans to acquire Permian Basin assets from Southwestern Energy Co., Houston, (NYSE: SWN) for $225 million in cash. The assets include 6% to 100% working interest (5% to 83% net revenue interest) in 10 fields (five operated) in Eddy and Lea counties, New Mexico, and Crane, Martin and Scurry counties, Texas. Net production is 1,000 barrels of oil and 3.5 million cubic feet per day. Proved reserves as of Dec. 31 are approximately 60 billion cubic feet equivalent. Harold M. Korell, Southwestern chairman and chief executive, says the sale, along with the sale of its utility, Arkansas Western Gas Co. and a recent Fayetteville shale deal, "are in keeping with our focus on present value. The proceeds will meet our remaining 2008 capital needs and position us well as we move into 2009." The Oil & Gas Asset Clearinghouse is advisor to Southwestern.