El Paso Buys Texas Properties for $225 Million

Associated Press

HOUSTON (AP) -- Energy producer El Paso Corp. said Friday its El Paso Exploration & Production Co. unit agreed to purchase for $255 million property in south Texas that is adjacent to its existing Gulf Coast operations.

El Paso is buying Laredo Energy III LP, operator and majority owner of the producing properties and undeveloped acreage in Zapata County, as well as separate working interests in some of the properties.

The 27,000 gross acres being acquired produce about 19 million cubic feet equivalent per day, and El Paso estimates proved reserves to be approximately 84 billion cubic feet equivalent.

The acquisition, subject to customary due diligence, is expected to close in January.

Shares of El Paso added 7 cents to $13.98 in morning trading on the New York Stock Exchange.