Offshore staff

(US, GoM) - The Houston Exploration Co. has signed a purchase and sale agreement to divest of the Texas portion of the company's GoM assets for $220 million in cash, subject to customary closing conditions.

According to an SEC filing, the transaction executed with "certain partnerships affiliated with Merit Energy Co.," is expected to close on March 31, 2006, and is effective from January 1.

As announced in November 2005, Houston Exploration is in the process of implementing a strategic shift in its operations to focus its efforts in onshore US basins. At the end of 2005, the Texas portion of the company's GoM proved reserves were estimated at 58.5 bcfe of natural gas.

Wachovia Securities is serving as the financial adviser to the company in connection with the sale of the Gulf assets.

03/02/06