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Five States Energy Company, LLC to Sell Operated Oil and Gas Properties in Sand Hills Field, Crane County, Texas

Posted on: Monday, 27 March 2006, 18:00 CST

DALLAS, March 27 /PRNewswire/ -- Five States Energy Company, LLC ("Five States" or the "Company"), an independent oil and gas company headquartered in Dallas, Texas, has exclusively engaged Energy Spectrum Advisors Inc. ("ESA") to divest certain operated oil and gas interests in the Sand Hills Field in Crane County, Texas (the "Properties").

The Company owns an approximate 95% working interest in the Properties and recent gross wellhead production was 110 barrels of oil per day and 2.0 million cubic feet of natural gas per day. Natural gas production from the Properties has a relatively high BTU content and is processed by a third party to remove natural gas liquids (NGLs) from the produced wellstream for separate marketing and sale. Oil and gas production is from 66 completions in the Judkins, McKnight, and Tubb formations ranging in depth from 2,500 feet to 4,800 feet. The Properties are 100% operated assets.

The Company estimates remaining net Total Proved reserves of 2.35 million barrels of oil and 12.3 billion cubic feet of natural gas, for a total of 4.4 million barrels of oil equivalent as of February 1, 2006. The Total Proved reserves include approximately 2.0 million barrels of oil and 5.5 billion cubic feet of natural gas in the Proved Undeveloped (PUD) category. These PUD reserves are associated with a proposed waterflood development of the Tubb reservoir. The Company estimates the net Total Proved PV10 is approximately $57 million (unrisked). In addition to Proved reserves value, additional upside reserves potential and production enhancement projects are believed to exist in the Properties but have not been quantified by the Company.

ESA is currently distributing information describing the Properties and is hosting a data room in Dallas.

Interested parties should contact Charlie Lapeyre (214-987-6123) or B.J. Brandenberger (214-987-6145) at ESA for more information. Additional information about this sale can be found at http://www.energyspectrum.com/ .

Headquartered in Dallas, Texas, ESA provides investment banking and financial advisory services to the oil and gas industry.

Energy Spectrum Advisors Inc.

CONTACT: Charlie Lapeyre, +1-214-987-6123, or B.J. Brandenberger,+1-214-987-6145, both of Energy Spectrum Advisors Inc.

Web site: http://www.energyspectrum.com/

Source: PRNewswire

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