ASI Energy acquiring ownership in Gulf Coast oil and gas properties

ASI Energy agreed to buy a working interest in three oil and gas fields in the South Texas Gulf Coast region for $8 million.

ASI Energy, the oil and gas division of San Antonio-based Analytical Surveys Inc. , is not disclosing the identity of the owner of those fields.

If certain conditions can be met, including financing arrangements, ASI Energy officials expect to close the transaction on or before Jan. 31, 2007.

ASI Energy CEO Lori Jones says these producing assets would provide the company with an initial reserve base of oil and gas, and cash flow from operations.

The properties consist of five wells, which are currently producing 66 barrels of oil and 1.73 million cubic feet of natural gas per day. ASI Energy is purchasing 90 percent of the interest in both the wells and acreage.

The wells are located in the Hardin, Willis and South Wharton fields in Liberty and Wharton counties in Southeast Texas.

Based upon engineering studies, the acquisition could produce as much as 57,000 barrels of oil and 2.2 billion cubic feet of gas reserves for ASI Energy throughout the life of the fields.

ASI Energy participates in the development of domestic oil and natural gas reserves with drilling partners.

Web site: www.asienergy.com

Published January 9, 2007 by the San Antonio Business Journal