O.C. Land to Be Sold by Oil Firm

Nuevo Energy Co., an oil exploration company, said it hopes to raise at least $50 million by selling part of its California real estate holdings, including 824 acres of undeveloped land north of Brea.

The Houston-based company said it hopes to sell a 236-acre parcel to a residential real estate developer.

Nuevo, which acquired the property from Unocal Corp. in 1996, said it plans to retain mineral rights. The area is generally is bordered by Valencia Avenue to the east, Lambert Road to the south, Wild Cat Way on the west, and Tonner Canyon Road on the North.

The company also intends to sell 2,500 acres of land in Santa Barbara County as well as 8,000 acres of agricultural land throughout the state next year.

A spokeswoman said the company’s goal is to raise $50 million in cash by selling certain parcels, but that it would generate more funds if it sold all of the property.

Douglas Foshee, Nuevo’s chief executive, told a group of investors in New Orleans that the company was selling the properties because real estate prices in California were high and it needs to focus on finding and developing oil and gas reserves. Nuevo is “not in the real estate business,” he said.

Still, Foshee said the company might have held onto the real estate for a bit longer if oil prices hadn’t been so low for so long. Oil prices averaged about 30% less in 1998 than they did in 1997.

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Ready for Sale

Nuevo Energy Co. plans to sell several hundred acres of undeveloped land just north of Brea, including a 236-acre parcel to a residential real estate developer.

POINTER: Parcel on the block