KCS Energy, Inc. is an independent oil and gas company engaged in the acquisition, exploration and production of natural gas and crude oil with operations predominantly in the Mid-Continent and Gulf Coast regions. The Company also purchases reserves (priority rights to future delivery of oil and gas) through its Volumetric Production Payment (VPP) program. All of the Company's exploration and production activities are located in the United States. In the Mid-Continent region, the Company explores in Oklahoma (Anadarko and Arkoma basins), north Louisiana, west Texas and Michigan. During 2001, KCS drilled 74 gross (36.0 net) wells in this region with a 96% success ratio. In the Gulf Coast region, the Company drilled 32 gross (6.6 net) wells in 2001 with a 66% success ratio.