MITCHELL ENERGY BUYS TEXAS OIL, GAS FIELD

MITCHELL ENERGY BUYS TEXAS OIL, GAS FIELD

Mitchell Energy & Development Corp. has purchased a 100 percent working interest in the 2,773-acre Lake Creek Field in Montgomery County, Texas, from Mobil Exploration & Producing U.S. Inc., Amoco Production Co. and Amerada Hess Corp. for $26 million.

Lake Creek includes 32 oil and gas wells, in addition to gas- gathering, treating and surplus-processing equipment, which currently produces 5 million cubic feet of gas and 300 barrels of oil per day from 19 wells.Lake Creek is located next to Mitchell's existing production at Pinehurst and increases its leasehold interest in the area to 11,000 acres.

Mitchell's Pinehurst Field currently produces 20 million cubic feet of gas and 500 barrels a day of oil from 21 wells. To date Pinehurst and Lake Creek have yielded 182 billion cubic feet of gas and 18 million barrels of oil.