Chancellor Group's Proved Texas Natural Gas Reserves Have Present Value Of
$489 Million
LAS VEGAS, Oct 31, 2000 /PRNewswire via COMTEX/ -- Chancellor Group, Inc. (OTC
Bulletin Board: CHAG), today revealed more details about its purchase last week
of 100% of Getty Petroleum, the owner of oil and natural gas leases on
approximately 1,350 acres adjoining Chancellor Group's Glass Mountain property
in Pecos County, Texas.
Shane X.G. Rodgers, Chancellor Group vice chairman, said the acquisition
increases the company's net proved undeveloped reserves of natural gas at the
property to 348 billion cubic feet with a pre-tax net present value of $489
million. The value is based on a gas price of $4.24 per thousand cubic feet, a
10% discounted cash flow and calculated in accordance with SEC appraisal
standards.
The per share present value of the reserves is $18.88 on 25.9 million
outstanding primary shares and $14.13 on 34.6 million fully diluted shares.
The sellers will receive 4.5 million shares of Chancellor Group's restricted
common stock, rather than the 4.7 million shares mentioned in the earlier
release.
Development of the property, which has anticipated life of 30-years, is expected
to begin early in the second quarter of 2001 and cost an estimated $32.5
million, a revision from the $35 million cited earlier. Subject to financing,
development is expected to be completed in three years. The company has no
commitment to raise the development costs.
Chancellor Group, Inc. is an emerging energy and natural resources company.
Additional information is available on the company's website,
www.chancellorgroupinc.com; www.wallstreetnewscast.com, along with audio
interviews with company, and on www.thestockbroker.com.
SOURCE Chancellor Group, Inc.
CONTACT: Nelson Fitch, 310-559-3618, for Chancellor Group, Inc.
URL: wallstreetnewscast.com
thestockbroker.com
chancellorgroupinc.com
prnewswire.com
(C) 2000 PR Newswire. All rights reserved.
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KEYWORD: Nevada
Texas
INDUSTRY KEYWORD: OIL
SUBJECT CODE: TNM
OTC
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