PURE RESOURCES INC

PURE RESOURCES INC

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Company Overview
Chevron Midcontinent Lp is a US-based energy company that is engaged in oil and gas field exploration services. The company was incorporated in 2006 and has its registered business office located in Midland, Texas.
Chevron Midcontinent operates as a subsidiary of Chevron Corporation which is headquartered in San Ramon, California. Chevron is considered as one of the world’s largest integrated energy companies. Chevron is engaged in every aspect of the oil and natural gas industry, including gas exploration and production operations, manufacturing, marketing and transportation, chemicals manufacturing and other businesses such as coal mining operations, power generation businesses, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, as well as real estate activities.
Business Summary
Pure Resources, Inc. is an independent energy company engaged in the exploitation, development, exploration and acquisition of oil and gas properties located in the Permian Basin of West Texas and southeastern New Mexico, the San Juan Basin of New Mexico and Colorado, offshore in the Gulf of Mexico and the Gulf Coast region covering Texas, Louisiana, Arkansas, Mississippi, Alabama and Florida. The Company is the result of a December 1999 merger between Titan Exploration, Inc. (Titan) and Union Oil Company of California (Union Oil), in which Titan and the Permian Basin business unit of Union Oil merged into a new company, Pure Resources, Inc. Titan had historically been involved in oil and gas exploration and production in the Permian Basin of West Texas and southeastern New Mexico, the Brenham Dome area of south central Texas and the Central Gulf Coast region of Texas.
Description and history
Pure Resources, Inc., incorporated in 1996, is an independent energy company engaged in the exploitation, development, exploration and acquisition of oil and gas properties located in the Permian Basin of West Texas and southeastern New Mexico, the San Juan Basin of New Mexico and Colorado, offshore in the Gulf of Mexico and the Gulf Coast region covering Texas, Louisiana, Arkansas, Mississippi, Alabama and Florida. The Company is the result of a December 1999 merger between Titan Exploration, Inc. (Titan) and Union Oil Company of California (Union Oil), in which Titan and the Permian Basin business unit of Union Oil merged into a new company, Pure Resources, Inc. Titan had historically been involved in oil and gas exploration and production in the Permian Basin of West Texas and southeastern New Mexico, the Brenham Dome area of south central Texas and the Central Gulf Coast region of Texas.

Pure’s strategy is to grow reserves, production, cash flows and net income per share by identifying acquisition opportunities that provide significant development and exploratory drilling potential. In addition, the Company exploits and develops its reserve base, pursues exploration opportunities for oil and gas reserves, capitalizes on advanced technology to identify, explore and exploit projects, and emphasizes a low overhead and operating cost structure.

On March 30, 2001, the Company and Hallwood Energy Corporation (Hallwood) announced the signing of a definitive merger agreement. Pursuant to the merger agreement, Pure Resources II, Inc., an indirect wholly owned subsidiary of Pure, would acquire all the outstanding shares of common stock of Hallwood. The merger was completed on May 31, 2001.

On January 31, 2001, Pure acquired oil and gas properties, fee mineral and royalty interests from International Paper Company and contributed cash for controlling general and limited partnership interests, in a partnership that owns oil and gas properties contributed by International Paper. The transaction provides the Company with additional areas of focus, primarily offshore in the Gulf of Mexico and in the Gulf Coast region covering Texas, Louisiana, Arkansas, Mississippi, Alabama and Florida. Pure also acquired over 6 million gross, or 3.2 million net, acres of fee mineral ownership, primarily across the southern Gulf Coast region of the United States.

As of December 31, 2001, Pure had proved reserves of approximately 80.5 million barrels (MMBbls) of oil and condensate, and 985.7 billion cubic feet (Bcf) of gas, or an aggregate of 244.8 million barrels of oil equivalent (MMBOE). On a pro-forma basis, Pure’s properties had an average reserve life of approximately 10.5 years. The Company’s proved reserves were 67% natural gas and 80% were classified as proved developed.

As of December 31, 2001, the Company operated over 4,500 gross productive wells (over 2,400 net productive wells), which represented over 81% of its total proved reserves as of such date. Pure’s emphasis on acting as operator of properties in which it has an interest enables it to manage expenses, capital allocation and other aspects of development and exploration.

Pure’s proved oil and gas properties are located in more than 400 fields/areas in the Permian Basin, the San Juan Basin, the offshore Gulf of Mexico and the Gulf Coast region. The Permian Basin, the Company’s most significant concentration of properties, is characterized by complex geology with numerous known producing horizons, and provides significant opportunities to increase reserves, production and ultimate recoveries through development, exploratory and horizontal drilling, recompletions, secondary and tertiary recovery methods and use of 3-D seismic and other advanced technologies.

Business Line
Engaged in oil and gas field exploration services
Subsidiary
HALLWOOD ENERGY CORP
Advisor
KPMG LLP
IPO date
5/2000
US SIC Code
1311
Company Address
500, West Illinois

City province or state postal code
79701, MIDLAND, TX
Phone: +1 915 498 8600
Fax: +1 915 687 0192
Country address: UNITED STATES OF AMERICA
Website url: www.pureresources.com