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EXHIBIT 99.1
Number: 01-01
CROSS TIMBERS COMPLETES ACQUISITION OF EAST TEXAS PROPERTIES
FORT WORTH, TX (Jan. 3, 2001) - Cross Timbers Oil Company (NYSE-XTO) today
completed its previously announced $115 million acquisition of producing
properties located in East Texas and Louisiana from Herd Producing Company, Inc.
of Tyler, Texas.
Cross Timbers' internal engineers estimate proved reserves related to the
acquired properties to be 175 billion cubic feet of gas equivalent , of which
more than 93% is natural gas. The properties are located in Freestone,
Limestone and Robertson counties of Texas and Claiborne and Union parishes of
Louisiana. The Texas properties include the Farrar, Bald Prairie, Southwest
Oletha and Luna fields which directly offset the Company's existing production.
The Louisiana properties are in the Colquitt and Oaks fields.
"We will immediately begin to develop these properties in conjunction with
our existing East Texas Freestone Trend exploitation program," stated Steffen E.
Palko, Vice Chairman and President. "This trend currently has a resource
potential of 1.2 trillion cubic feet of gas, which includes more than 500
potential drilling locations and a multitude of recompletion projects."
"This acquisition provides the additional inventory of opportunities for
the Company to achieve its previously stated goals of increasing gas production
by 20% per year," stated Bob R. Simpson, Chairman and Chief Executive Officer.
"As a result, we expect to increase gas production to 535 million cubic feet per
day by the end of 2002, a 60% increase above the average rate for 2000."
The purchase will be funded initially through existing bank lines, which
should be repaid from cash flow during the first six months of 2001.
Cross Timbers Oil Company is a premier domestic natural gas producer engaged
in the acquisition, exploitation and development of quality, long-lived oil and
gas properties. The Company, whose predecessors were established in 1986,
completed its initial public offering in May 1993. Its properties are
concentrated in Texas, Oklahoma, Kansas, New Mexico, Arkansas, Wyoming and
Alaska and Louisiana.
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Contact: John M. O'Rear Gary D. Simpson
Vice President and Treasurer Director of Investor Relations
Cross Timbers Oil Company Cross Timbers Oil Company
(817) 870-2800 (817) 870-2800
This news release can be found at the Company website: www.crosstimbers.com
Statements made in this press release, including those relating to future
production, proved reserves and development activities, are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These statements are based
on assumptions and estimates that management believes are reasonable based on
currently available information; however, management's assumptions and the
Company's future performance are both subject to a wide range of business risks
and uncertainties and there is no assurance that these goals and projections can
or will be met. Any number of factors could cause actual results to differ
materially from those in the forward-looking statements, including, but not
limited to, the timing and extent of changes in oil and gas prices, changes in
underlying demand for oil and gas, the timing and results of drilling activity,
the availability of drilling equipment, changes in interest rates and higher
than expected production costs and other expenses. The Company undertakes no
obligation to publicly update or revise any forward-looking statements. Further
information on risks and uncertainties is available in the Company's filings
with the Securities and Exchange Commission, which are incorporated by this
reference as though fully set forth herein.
