2010-05-17-2010-05-14-2010-05-14

Acquired 164,000 acres in CO & UT Paradox Basin, gaining 30 MMcfe/d.

Houston-based, privately held Patara Oil & Gas LLC has acquired assets in the Paradox Basin in Colorado and Utah from an undisclosed seller for an undisclosed price.

The assets include 190,000 gross acres (164,000 net) in Montrose, Dolores and San Miguel counties, Colorado, and San Juan and Grand counties, Utah, with major fields being Hamilton Creek and Andy's Mesa. The acquisition involved 96 wells producing 25 million cubic feet of gas equivalent per day net (mostly gas) targeting the Cutler, Honnaker Trail and Leadville formations.

Other assets include 262 miles of pipeline and three gas-processing facilities.

The deal marks Patara's entry into the basin.

This acquisition adds to Patara's East Texas assets for total current net production of 30 million cubic feet of gas equivalent per day, 170 billion cubic feet of gas equivalent proved reserves, and 170,000 net acres of land.

Equity was provided by Jefferies Capital Partners with bank financing from BNP Paribas, Union Bank of California and Jefferies Finance.

Patara is backed by private-equity management firm Jefferies Capital Partners and is led by former Rosetta Resources Inc. CEO Bill Berilgen and other former Rosetta executives including Charles Richardson, Lane Kincannon and Edward Seeman.