Article: St. Mary Announces Agreement to Acquire Oil and Gas Properties From Flying J Oil & Gas and Big West Oil & Gas.

Business Editors

DENVER--(BUSINESS WIRE)--Dec. 13, 2002

St. Mary Land & Exploration Company (NYSE:SM) today announced that through its wholly owned subsidiary Nance Petroleum Corporation it had agreed to acquire oil and gas properties with an estimated 69 BCFE of proved reserves, 92% developed, from Flying J Oil & Gas Inc. and Big West Oil & Gas Inc. in exchange for the issuance of a total of 3.4 million restricted shares of St. Mary common stock.

In addition, St. Mary has agreed to make a non-recourse loan to Flying J and Big West of $72 million at Libor plus 2% for up to a 39-month period, which will be secured by a pledge of the shares of St. ...

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