The Houston Exploration Co., Houston, (NYSE: THX) plans to acquire an estimated 88 billion cubic feet of gas equivalent (75% gas; 40% proved developed) of proved reserves in South Texas for $163 million from Oklahoma City-based Kerr McGee Corp. (NYSE: KMG). Net production is approximately 10 million cubic feet of gas equivalent from four fields. The assets will be operated by Houston Exploration. Closing is expected by the end of November. The properties will increase THX's position in South Texas by 26,300 net acres. The company plans to finance this transaction with borrowings under its existing revolving credit facility.
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