Isramco to Acquire Oil and Gas Properties in Texas and New Mexico for $100 Million
Isramco Inc. said Friday that it has signed an agreement with Five States Energy Co. LLC to acquire certain oil and gas properties in Texas and New Mexico for $100 million.
The properties include about 660 producing oil and gas wells. Profit from the properties in the first seven months of 2006 totaled about $11 million, Isramco said.
Isramco said engineering estimates show that its share of the proved developed reserves would be about 2 million barrels of oil, 28 billion cubic feet of gas and 1.6 million barrels of byproducts of natural gas.
The company said it plans to self-finance up to 15 percent of the purchase price and to finance the rest through loans.
The terms of the deal include a deposit of $3 million paid by Isramco to Five States. The remainder of the cost will be paid at closing, which is expected to take place on Jan. 20.
Isramco shares closed up $1.05, or 5.4 percent, at $20.50 on the Nasdaq.
