2010-01-12-2010-01-12-2009-12-31

Acquired producing oil properties in Altamont-Bluebell Field in Duchesne & Uintah cos., Uinta Basin, UT, gaining 70 Bcfe proved, 9 MMcfe/d.

Houston-based El Paso Corp. (NYSE: EP) has acquired producing oil properties in the Uinta Basin in Utah from North Salt Lake, Utah-based Flying J Oil & Gas Inc., a subsidiary of Flying J Inc., for $103.5 million.

The assets are primarily in Altamont-Bluebell Field in Duchesne and Uintah counties. Proved reserves are 70 billion cubic feet equivalent. Production is approximately 9 million cubic feet equivalent per day.

The company estimates it paid $1.49 per thousand cubic feet equivalent of proved reserves.

El Paso chairman, president and chief executive Doug Foshee says, "We will integrate these properties into our existing operations quickly and efficiently, and we expect to add more proved reserves as we further develop these properties."

El Paso spokesman Bill Baerg says, "To get proved oil reserves right next to our field at such attractive metrics is exciting to us."

Pro forma the acquisition, El Paso reports it has approximately $1.8 billion in liquidity.

Flying J is currently in Chapter 11 bankruptcy and plans to merge with Knoxville, Tenn.-based Pilot Travel Centers.

The Blackstone Group was financial advisor to Flying J.