Adexco Production Co.

Adexco Production Co. has retained Albrecht & Associates Inc. to sell assets in the Barnett shale in the Fort Worth Basin of Texas. This second package includes interest in 9,990 gross acres (7,113 net) in Erath, Johnson, Palo Pinto, Parker and Tarrant counties of which approximately 30% is held by production. Adexco's interests cover all depths with only a few exceptions. Total proved reserves are 101 billion cubic feet equivalent net (5.4 net proved developed producing). Net daily production is 2.6 million cubic feet equivalent per day (2.1 million cubic feet gas and 80 barrels of oil). Projected proved developed producing cash flow for the first 12 months following the effective date is $6.5 million. The assets include 17 producing Barnett wells, two wells that are waiting on completion and three wells that are shut in. The wells that are waiting on completion have been placed in the proved developed nonproducing category even though they are expected to be producing by the effective date. Upside includes interests in 113 proved undeveloped locations. Adexco operates five of the wells and should operate at least 105 of the locations. All of the wells and proved undeveloped locations included in the sale are horizontal. Adexco has 3-D seismic covering much of the acreage. The data room is open. The bid due date is June 25. The effective date is July 1. Contact Harrison Williams, 713-951-9586.