Nuevo Transfers a 25% Participating Interest in Its Accra-Keta Permit Offshore The Republic of Ghana
Nuevo Energy Company has transferred, for undisclosed consideration, a 25% participating interest in its Accra-Keta Permit located offshore the Republic of Ghana, West Africa, to a large U.S.-based independent oil and gas company, Nuevo announced today. Nuevo's partner has market capitalization exceeding $3 billion and a Standard & Poor's investment-grade credit rating. The transaction is subject to Ghanaian government approval.
Nuevo will continue to be the operator of the 2.7-million-acre Accra-Keta Permit and retain a 75% participating interest. The Company expects to spud its first wildcat exploratory well in this Permit, known as the Cougar prospect, late in the fourth quarter 2000 or in early 2001.
``We are pleased to have as our first partner in the Accra-Keta Permit a company with a stellar reputation in the industry and a record of international E&P success,'' commented Doug Foshee, Chairman and CEO of Nuevo. ``We continue to have discussions with other parties interested in obtaining interests in this Permit.''
Nuevo Energy Company is a Houston, Texas-based Company primarily engaged in the exploration for, and the acquisition, exploitation, development and production of crude oil and natural gas. Nuevo's principal domestic properties are located onshore and offshore California. Nuevo is the largest independent producer of oil and gas in California. The Company's international properties are located offshore the Republics of Congo and Ghana in West Africa and offshore and onshore the Republic of Tunisia in North Africa. To learn more about Nuevo, please refer to the Company's internet site at http://www.nuevoenergy.com.
This press release includes ``forward-looking'' statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release, including without limitation, business strategies, estimated reserves and production volumes, plans and objectives of management of the Company for future operations, and capital expenditures are forward-looking statements. Although the Company believes that the assumptions upon which such forward-looking statements are based are reasonable, it can give no assurances that such assumptions will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations (``Cautionary Statements'') and projections include volatility in oil and gas prices, operating risks, the risks associated with reserve replacement, competition from other companies and other factors set forth in the Company's Annual Report on Form 10-K filed with the SEC and incorporated herein. All subsequent written and oral forward-looking statements and projections attributable to the Company or to persons acting on its behalf are expressly qualified by the Cautionary Statements.
