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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (49946)	8/26/1999 10:23:00 PM
From: Elmo Gregory	Respond to of 95453

From the Dallas Morning News: Cross Timbers to sell stake in Permian trust 08/25/99 By Dianne Solis / The Dallas Morning News Cross Timbers Oil Co., a Fort Worth-based oil and natural gas exploration company, said Tuesday that it plans to sell 40 percent of its newly created Texas Permian Royalty Trust to the public. It hopes to raise as much as $150 million in October to reduce debt. The company said it expects to sell 10 million out of a total 25 million units in the Texas Permian trust. About 70 percent of the trust properties are oil-based fields, some of which date to the 1950s. Cross Timbers said it is using sophisticated recovery techniques at the sites. It is the third royalty trust that Cross Timbers has created since 1992. The first trust was called Cross Timbers Royalty Trust. The second trust, the Hugoton Royalty Trust, which was created in May, is named after one of the nation's largest gas fields, stretching across Kansas, Oklahoma and northern Texas. The properties shed into that trust are largely aging fields, some of which date to the '40s. Cross Timbers said it has about $745 million in debt. Cross Timbers officials have said it may hold additional property sales of $50 million to $70 million to bring debt down. Last year, Cross Timbers posted a net loss of $71 million on revenue of about $249 million. In the last six months, Cross Timbers had net income of $27.6 million on revenue of $135 million. Cross Timbers has weathered the recent downturn in oil prices by moving more into natural gas properties. About 90 percent of Cross Timbers' reserves are now in natural gas, a spokesman said. The company has properties in Texas, Oklahoma, Kansas, New Mexico, Arkansas, Wyoming and Alaska. The underwriters for the offering are Goldman, Sachs & Co.; Lehman Bros.; Banc of America Securities; Dain Rauscher Corp.; and Salomon, Smith, Barney. dallasmorningnews.com