Exhibit 99.1
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P R E S S R E L E A S E
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FOR IMMEDIATE RELEASE For further information contact:
Xxxxx X. Xxxxx
713/821-7102
xxxxxx@0xxxxxxxxx.xxx
3TEC Energy Corporation Announces Closing of
Classic Resources Inc. Acquisition
Houston, Texas, January 31, 2001... 3TEC Energy Corporation ("3TEC")
(NASDAQ: TTEN) announced today that it has closed the previously announced
acquisition of 100% of the issued and outstanding stock of Classic Resources
Inc. ("Classic"). Classic is a privately-held exploration and production company
based in Dallas, Texas.
Classic's properties are located near 3TEC's existing reserves in East
Texas. 3TEC estimates these properties have total net proved reserves of 47 Bcfe
and net daily production of 11 Mmcfe, as of January 1, 2001. Combined with
3TEC's existing East Texas production, 3TEC expects this core area to produce
approximately 38 Mmcfe per day for the company. The estimated reserves for
Classic are 96% gas on an equivalent basis and 99% operated. Approximately 63%
of the reserves are classified as proved producing. 3TEC has identified 24
proved undeveloped locations and plans an active drilling program on Classic's
properties in 2001.
3TEC Energy Corporation is engaged in the acquisition, development,
production and exploration of oil and natural gas, with properties
geographically concentrated in East Texas and the Gulf Coast regions. 3TEC also
owns significant properties in the Permian and San Xxxx basins and in the Mid-
Continent region.
The information contained in this press release may contain projections,
estimates and other 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. Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that its goals will be
achieved. Important factors that could cause actual results to differ materially
from those included in the forward-looking statements include the timing and
extent of changes in commodity prices for oil and gas, environmental risks,
drilling, producing and operating risks, including the risk that significant
properties do not achieve projected results, risks related to exploration and
development including risks relating to the lack of economic drilling prospects,
the inability of the Company to achieve expected efficiencies in controlling
expenses, uncertainties about the estimates of reserves, government regulation,
competition and the ability of the Company to meet its stated business goals.
