Cross Timbers completes sales

Petroleum News Alaska Staff

Cross Timbers Oil Co. has completed previously announced properties sales for $68.3 million and used the proceeds from the sales, completed March 31, along with internally generated cash to purchase the minority interest in Arkoma basin properties held by Lehman Brothers Holdings Inc. for $111 million.

The properties sold are primarily in Crockett County, Texas, and Lea County, New Mexico. In aggregate, Cross Timbers said, it sold producing properties with current daily production of approximately 13.1 million cubic feet of gas and 560 barrels of oil and will recognize an after-tax gain of approximately $13 million.

In addition, Cross Timbers said, it completed the sale of almost all of its portfolio of equity securities during the first quarter for sales proceeds of approximately $42 million, recognizing an after-tax gain of $9.5 million. Remaining marketable securities are valued at less than $2 million. Proceeds from equity security sales are earmarked for the company’s ongoing treasury share repurchase program.

“These actions complete the financing of our Arkoma basin acquisitions,” Cross Timbers Chairman and CEO Bob R. Simpson said in an April 3 statement.

“We emphasize the importance of adding almost 500 billion cubic feet of gas reserves in a new core area when gas prices were substantially lower than today.”

Simpson added that Cross Timbers now has “the highest cash flow and largest inventory of development opportunities in its history.” The company has also, he said, tripled reserves, production and value per share in the past few years.