The transactions, which will have an economic effective date of January 1, 2006, include an estimated 106 billion cubic feet of natural gas equivalents (Bcfe) of proved reserves and approximately 100 Bcfe of probable and possible reserves. The long-lived, natural gas reserves are located in the Elm Grove and Caspiana fields in North Louisiana.

"We continue to deliver on our strategy to add quality properties which offer significant upside to our portfolio," said President and Chief Executive Officer Floyd C. Wilson. "Our team has broad experience developing properties in the East Texas / North Louisiana region and has seized this opportunity to refine our asset base with high margin properties, while adding significant development drilling opportunities. This transaction is very well suited to our strategy."