Evergreen Resources Expands Acreage Position in Ireland

Apr 04, 2001, 01:00 ET from Evergreen Resources, Inc.

    DENVER, April 4 /PRNewswire/ -- EVERGREEN RE

SOURCES, INC. (NYSE: EVG) today announced that it has signed a closing agreement to acquire a 100% working interest in 480,000 acres of prospective tight gas sand properties in the Republic of Ireland. The acreage is contiguous with the 605,000 acres of tight gas sand properties in Northern Ireland that Evergreen acquired in late February (as reported in the company's news release of February 28, 2001). Evergreen has received government approval as the license holder of these northern properties. Both agreements were executed with Denver-based Priority Oil & Gas, LLC and S. Morrice & Associates, Ltd. Total consideration from Evergreen on the second acquisition was $500,000 in cash and the reservation of a small royalty interest to the sellers. As a result of this agreement, Evergreen now owns a 100% working interest in 1,085,000 acres of prospective tight gas sand properties in the Northwest Carboniferous Basin. The city of Enniskillen is located near the geographic center of the company's leasehold. Evergreen plans to drill at least one exploratory well on the newly acquired acreage this year, bringing to five the number of wells that the company plans to drill in the Basin over a 12-month period beginning this June. Drilling objectives are multiple tight gas sands contained in Carboniferous formations at depths ranging from 2,000 feet to 4,500 feet. Total anticipated expenditures for the work commitment for all five wells are estimated at $3.5 million. As reported in the company's news release of February 28, 2001, the Northwest Carboniferous Basin holds large-scale potential with unrisked recoverable reserves estimated at up to 5 trillion cubic feet of natural gas. Evergreen President and CEO Mark S. Sexton stated, "This property acquisition represents the remaining portion of the Northwest Carboniferous Basin that we consider to be prospective for tight gas sand development. Evergreen believes the geologic characteristics of the Basin are similar to the Appalachian Basin of the Eastern United States." Evergreen Resources is an independent energy company engaged in the exploration, development, production, operation and acquisition of oil and gas properties. Evergreen is one of the leading developers of coal bed methane reserves in the United States. Evergreen's current operations are principally focused on developing and expanding its coal bed methane project located in the Raton Basin in southern Colorado. Evergreen has also initiated a coal bed methane project in the United Kingdom and owns additional interests in other domestic and international areas. This press release contains forward-looking statements within the meaning of federal securities laws, including forward-looking statements regarding natural gas reserves and production. These statements are subject to various uncertainties. Actual results could differ materially from these forward-looking statements as a result of a variety of risks, including, among others, risks that production and reserve estimates are inaccurate or gas prices change such that reserves become uneconomic. Accordingly, there can be no assurance that actual results will be as projected in these forward-looking statements.

SOURCE Evergreen Resources, Inc.
    DENVER, April 4 /PRNewswire/ -- EVERGREEN RESOURCES, INC. (NYSE:   EVG)
 today announced that it has signed a closing agreement to acquire a
 100% working interest in 480,000 acres of prospective tight gas sand
 properties in the Republic of Ireland.  The acreage is contiguous with the
 605,000 acres of tight gas sand properties in Northern Ireland that Evergreen
 acquired in late February (as reported in the company's news release of
 February 28, 2001).  Evergreen has received government approval as the license
 holder of these northern properties.
     Both agreements were executed with Denver-based Priority Oil & Gas, LLC
 and S. Morrice & Associates, Ltd.  Total consideration from Evergreen on the
 second acquisition was $500,000 in cash and the reservation of a small royalty
 interest to the sellers.
     As a result of this agreement, Evergreen now owns a 100% working interest
 in 1,085,000 acres of prospective tight gas sand properties in the Northwest
 Carboniferous Basin.  The city of Enniskillen is located near the geographic
 center of the company's leasehold.  Evergreen plans to drill at least one
 exploratory well on the newly acquired acreage this year, bringing to five the
 number of wells that the company plans to drill in the Basin over a 12-month
 period beginning this June.  Drilling objectives are multiple tight gas sands
 contained in Carboniferous formations at depths ranging from 2,000 feet to
 4,500 feet.  Total anticipated expenditures for the work commitment for all
 five wells are estimated at $3.5 million.  As reported in the company's news
 release of February 28, 2001, the Northwest Carboniferous Basin holds
 large-scale potential with unrisked recoverable reserves estimated at up to
 5 trillion cubic feet of natural gas.
     Evergreen President and CEO Mark S. Sexton stated, "This property
 acquisition represents the remaining portion of the Northwest Carboniferous
 Basin that we consider to be prospective for tight gas sand development.
 Evergreen believes the geologic characteristics of the Basin are similar to
 the Appalachian Basin of the Eastern United States."
 
     Evergreen Resources is an independent energy company engaged in the
 exploration, development, production, operation and acquisition of oil and gas
 properties.  Evergreen is one of the leading developers of coal bed methane
 reserves in the United States.  Evergreen's current operations are principally
 focused on developing and expanding its coal bed methane project located in
 the Raton Basin in southern Colorado.  Evergreen has also initiated a coal bed
 methane project in the United Kingdom and owns additional interests in other
 domestic and international areas.
 
     This press release contains forward-looking statements within the meaning
 of federal securities laws, including forward-looking statements regarding
 natural gas reserves and production.  These statements are subject to various
 uncertainties.  Actual results could differ materially from these
 forward-looking statements as a result of a variety of risks, including, among
 others, risks that production and reserve estimates are inaccurate or gas
 prices change such that reserves become uneconomic.  Accordingly, there can be
 no assurance that actual results will be as projected in these forward-looking
 statements.
 
 SOURCE  Evergreen Resources, Inc.