Fort Liard (May 31/04) - ChevronTexaco announced a $1.089-billion sale of Western Canadian assets, including the Fort Liard field on May 25.

The original sale was made to Acclaim Energy Trust and Enerplus Resources Fund which then sold the Fort Liard field to Paramount Resources.

Enerplus Resources chipped in $466 million, Acclaim invested $433 million and Paramount Resources purchased the Fort Liard field as well properties in the Kaybob area, north of Edson, Alta., for $189 million. Paramount has arranged a $180 million loan to fund the acquisition.

"The assets are either coincident or very nearly offsetting major areas of operations for Paramount in areas where Paramount has significant expertise," said company president and chief operating officer Jim Riddell.

"The assets purchased by Paramount produce 10,000 barrels of oil equivalent (boe) comprised of 40 million cubic feet per day of natural gas as well as 3,300 barrels of oil equivalent in oil and natural gas liquids per day," said Riddell.

The reserves on Paramount's acquisition equals 12 million boe, comprised of 47.5 billion cubic feet of natural gas and 4.4 million barrels of oil.

Enerplus is acquiring 11,500 barrels of oil equivalent per day with 54 per cent being crude oil and 46 per cent being natural gas.

Acclaim is acquiring a package of assets producing 17,000 barrels of oil equivalent per day, including 34 million cubic feet per day of natural gas and 11,400 barrels per day of light crude oil and natural gas liquids.

"Overall, these are high netback properties with considerable future development potential. We are also very pleased to have partnered with Enerplus in this unique and successful transaction," said Acclaim president and chief executive officer, J. Paul Charron.

Lynn Lehr, a spokeswoman with ChevronTexaco, said the company announced last year that it was evaluating opportunities to sell off its non-core assets.

Now, ChevronTexaco will focus on the oilsands, the Mackenzie Delta and East Coast operations.

The sale is expected to close on June 30, 2004.