Cimarex Energy Co.

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Post Date
Estimated Price

Cimarex Energy Co., Denver, (NYSE: XEC) has retained Tristone Capital Inc. to sell operated and nonoperated Gulf of Mexico shelf assets in one or multiple packages. The sale represents a complete exit from the area by Cimarex. The properties are offshore Louisiana in federal waters and include interests in more than 100 blocks (50 producing and 53 term). The operated package includes four producing blocks and 25 term blocks. Major blocks include WC 295 and ST 250/264/265. The nonoperated package includes 46 producing blocks and 28 term blocks. Major producing blocks include MP 107/108, SS 358 and EI 397. The total package includes 27% average working interest (22% net revenue interest) in 462,575 gross acres (242,046 net). Total net production is 21.7 million cubic feet equivalent per day (76% gas). Net cash flow is $5.8 million per month. DeGolyer & MacNaughton has been retained to evaluate the reserves. Proved and probable low-risk, behind-pipe opportunities exist. The data room is open. The bid due date is Sept. 9. Contact Rob Bilger, 713-651- 4200.