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Gold/Mining/Energy : American Resources of Deleware (GASS) -- Ignore unavailable to you. Want to Upgrade?

To: oilstks who wrote (143)	1/14/1998 3:22:00 PM
From: oilstks	Read Replies (3) \| Respond to of 172

American Resources of Delaware Inc. Announces Acquisition of Offshore Texas and Louisiana Properties VERSAILLES, Ky.--(BUSINESS WIRE)--Jan. 14, 1998--American Resources of Delaware Inc. (NASDAQ: GASS - news; ''ARI'') today announced that its wholly owned subsidiary, American Resources Offshore Inc. (''ARO'') has entered into an agreement to acquire all of the offshore Gulf of Mexico assets of TECO Oil & Gas Inc. (''TECO''), a subsidiary of TECO Energy Inc., for $57.5 million. ARI anticipates that the closing of the transaction will occur on or before Feb. 16, 1998. The properties to be acquired include 40 federal lease blocks and one Texas state lease block in the offshore Gulf of Mexico covering a total of 197,468 acres with four currently producing wells and one additional well awaiting connection to production facilities. ARO will also be acquiring access to approximately 12,500 square miles of 3-D seismic data with a substantial value and the interest of TECO in two limited partnerships. Additionally, 27 initial drilling locations have been identified on structural closures with 3-D amplitude support and/or positive AVO responses. TECO has an average working interest of approximately 30% in each of the blocks with reserves which have been estimated to be in excess of 80 billion cubic feet of gas equivalents. ARO would also become a participant in an ongoing exploration program in which a team of geoscientists uses state-of-the-art equipment and technology. President and CEO of ARI, Rick Avare, commented, ''This is the acquisition we have been looking for. With four substantial wells already producing and one more to be hooked up in the near future, we should start out with respectable cash flows; but the real excitement comes from the potential in these properties. In addition, we are scheduled to participate in 3 'bright spot' prospects to be drilled in the first quarter of 1998. We are very pleased that the first acquisition to be credited to Bill Gray and the staff of ARO will nearly double the size of our company.'' American Resources of Delaware Inc. is a fully integrated producer of oil and gas. The Company owns pipelines and production in the Gulf Coast and Appalachian regions. For more information, contact the Company's Investor Relations Department at 606/873-5455.