2010-03-10-2010-01-11-2010-01-11

Bought 51% WI in 5,662 acres in Fenton, Lacassine Grand Lake fields in in Allen, Cameron, Calcasieu & Jefferson Davis parishes, LA, gaining 10.4 Bcfe proved, 2.9 MMcfg/d.

Crimson Exploration Inc., Houston, (NasdaqGM: CXPO) has sold operated and nonoperated working interests in southwestern Louisiana to an undisclosed private seller for $7.8 million, representing an exit from the region.

The assets involve various producing wells, related production equipment and associated acreage in Allen, Cameron, Calcasieu and Jefferson Davis parishes. Production during third-quarter 2009 was approximately 2.9 million cubic feet of gas equivalent per day. The proved reserves represented approximately 7% of Crimson's proved reserves as of the end of third-quarter 2009, the company reports.

According to its website, Crimson holds and average 51% working interest in 9,778 gross developed acres (4,250 net) and 1,838 gross undeveloped acres (1,412 net) in Fenton, Lacassine and Grand Lake fields in southwestern Louisiana. Production was from 21 gross wells (12 net) targeting the Hackberry, Miocene and Oligocene formations. Proved reserves as of year-end 2008 were 10.4 billion cubic feet equivalent (76% gas and gas liquids).

The agreement provides for up to an additional $2.4 million for properties in which consents are pending.

"The sale of these assets represents a strategic exit from all operations in South Louisiana and removes approximately $5.2 million of our total recorded asset retirement obligation at Sept. 30, 2009," the company said in a statement.

Proceeds were used to repay debt. Crimson holds interests in South Texas, East Texas and the Upper Gulf Coast.