EX-99.1
3
h24386exv99w1.txt
PRESS RELEASE DATED APRIL 14, 2005
EXHIBIT 99.1
NEWS
FINANCIAL
RELATIONS BOARD
AT THE COMPANY AT FINANCIAL RELATIONS BOARD
William N. Hahne Marilynn Meek - General Info (212) 827-3773
President and COO Susan Garland - Analysts (212) 827-3775
(713) 877-8006
FOR IMMEDIATE RELEASE:
KCS ENERGY, INC. CLOSES ACQUISITION
HOUSTON, TX, APRIL 14, 2005 -- KCS Energy, Inc. (NYSE: KCS) today announced that
its wholly owned subsidiary, KCS Resources, Inc. has closed on the previously
announced acquisition of a package of core area properties.
The acquisition includes properties in North Louisiana and East Texas that
contain proved reserves internally estimated to be 47 BCFE. Approximately
three-fourths of the value of the acquisition is associated with leases in the
Elm Grove/Caspiana Field near the existing KCS operated field, which is the
highest value field in the Company.
The adjusted closing price was $86.9 million which was funded with proceeds from
a private placement of 7-1/8% Senior Notes due 2012. The Company had previously
hedged an equivalent amount of the current production from the newly acquired
assets through 2006.
Commenting on the merits of the transaction, William N. Hahne, President and
Chief Operating Officer elaborated, "Over the last two years we have drilled 60
wells in the Elm Grove Field, increasing our gross operated production from five
to over 45 Mmcfpd. Our staff has identified 185 potential drilling locations on
the acquired properties, which are in the same producing trend as our existing
acreage and for which no proved reserves have been assigned. The acquisition of
this package is consistent with our goal to continue steady growth in production
and reserves through the drill bit".
The following abbreviations are utilized herein:
Mmcfpd - Million Cubic Feet of Natural Gas Per Day
Bcfe - Billion Cubic Feet of Natural Gas Equivalent
This press release contains forward-looking statements that involve a number of
risks and uncertainties. Among the important factors that could cause actual
results to differ materially from those indicated by such forward-looking
statements are delays and difficulties in developing currently owned properties,
the failure of exploratory drilling to result in commercial wells, delays due to
the limited availability of drilling equipment and personnel, fluctuation in oil
and gas prices, general economic conditions and the risk factors detailed from
time to time in the Company's periodic reports and registration statements filed
with the Securities and Exchange Commission.
KCS is an independent energy company engaged in the acquisition, exploration,
development and production of natural gas and crude oil with operations in the
Mid-Continent and Gulf Coast regions. For more information on KCS Energy, Inc.,
please visit the Company's web site at http://www.kcsenergy.com ####
5555 San Felipe, Suite 1200, Houston, TX 77056

EX - 99 . 1 3 h24386exv99w1 . txt PRESS RELEASE DATED APRIL 14 , 2005 EXHIBIT 99 . 1 NEWS FINANCIAL RELATIONS BOARD AT THE COMPANY AT FINANCIAL RELATIONS BOARD William N . Hahne Marilynn Meek - General Info ( 212 ) 827 - 3773 President and COO Susan Garland - Analysts ( 212 ) 827 - 3775 ( 713 ) 877 - 8006 FOR IMMEDIATE RELEASE : KCS ENERGY , INC . CLOSES ACQUISITION HOUSTON , TX , APRIL 14 , 2005 -- KCS Energy , Inc . ( NYSE : KCS ) today announced that its wholly owned subsidiary , KCS Resources , Inc . has closed on the previously announced acquisition of a package of core area properties . The acquisition includes properties in North Louisiana and East Texas that contain proved reserves internally estimated to be 47 BCFE . Approximately three - fourths of the value of the acquisition is associated with leases in the Elm Grove / Caspiana Field near the existing KCS operated field , which is the highest value field in the Company . The adjusted closing price was $ 86.9 million which was funded with proceeds from a private placement of 7 - 1/8% Senior Notes due 2012 . The Company had previously hedged an equivalent amount of the current production from the newly acquired assets through 2006 . Commenting on the merits of the transaction , William N . Hahne , President and Chief Operating Officer elaborated , " Over the last two years we have drilled 60 wells in the Elm Grove Field , increasing our gross operated production from five to over 45 Mmcfpd . Our staff has identified 185 potential drilling locations on the acquired properties , which are in the same producing trend as our existing acreage and for which no proved reserves have been assigned . The acquisition of this package is consistent with our goal to continue steady growth in production and reserves through the drill bit " . The following abbreviations are utilized herein : Mmcfpd - Million Cubic Feet of Natural Gas Per Day Bcfe - Billion Cubic Feet of Natural Gas Equivalent This press release contains forward - looking statements that involve a number of risks and uncertainties . Among the important factors that could cause actual results to differ materially from those indicated by such forward - looking statements are delays and difficulties in developing currently owned properties , the failure of exploratory drilling to result in commercial wells , delays due to the limited availability of drilling equipment and personnel , fluctuation in oil and gas prices , general economic conditions and the risk factors detailed from time to time in the Company 's periodic reports and registration statements filed with the Securities and Exchange Commission . KCS is an independent energy company engaged in the acquisition , exploration , development and production of natural gas and crude oil with operations in the Mid - Continent and Gulf Coast regions . For more information on KCS Energy , Inc . , please visit the Company 's web site at http://www.kcsenergy.com # # # # 5555 San Felipe , Suite 1200 , Houston , TX 77056