Cross Timbers Oil anticipates sale of Cross Timbers Royalty Trust

Journal Record, The (Oklahoma City), Jun 18, 1998

FORT WORTH, Texas (JR) -- Cross Timbers Oil has filed a registration statement with the Securities and Exchange Commission to sell its 1,360,000 units of beneficial interest in Cross Timbers Royalty Trust.

This filing is made in anticipation of improving commodity prices and related market conditions for oil and gas equities. Consequently, any sale is dependent upon more favorable market conditions.

The registered units were obtained by the company through private and open market transactions during 1996, 1997 and early 1998. Since December 1997, Cross Timbers has acquired 540 billion cubic feet of gas equivalent in the San Juan and East Texas basins at a cost of approximately $410 million. These properties created two new core areas of primarily operated properties. As the underlying properties in the Cross Timbers Royalty Trust are non-operated interests and the reserves associated with the company's ownership of the trust units represent only a small percentage of Cross Timbers' reserve base, the company is considering the sale of its units and the reinvestment of the proceeds within its new core areas. Cross Timbers Oil is engaged in the acquisition, exploitation and development of quality, long-lived producing oil and gas properties. The company, whose predecessors were established in 1986, completed its initial public offering in May 1993. Its properties are concentrated in Texas, Oklahoma, Kansas, New Mexico and Wyoming.