Spirit Energy 76 Completes Sale of Oklahoma Oil and Gas Assets to Magnum Hunter

Spirit Energy 76, Unocal's Lower 48 exploration and production unit, today said that it has closed the previously announced sale of substantially all of its oil and gas assets in Oklahoma to Magnum Hunter Production, Inc., a wholly owned subsidiary of Magnum Hunter Resources, Inc. for approximately $34 million in cash. An additional $3 million is expected in January from other parties exercising preferential rights, bringing the total value of the transaction to approximately $37 million.

Spirit Energy 76 said that the sale is consistent with its recent efforts to focus more of its primary exploration and production activities onshore in Texas and the Gulf Coast region and offshore in the Gulf of Mexico.

Approximately 115,300 net leasehold acres, which includes some acreage in the Texas Panhandle, are included in the sale. These properties currently produce about 16.2 million cf/d natural gas equivalent. Estimated reserves were not disclosed.

Unocal is one of the world's largest independent oil and gas exploration and production companies, with major resource development, power plant and pipeline projects in Asia, the U.S. Gulf of Mexico region and Latin America.