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ARCH PETROLEUM ANNOUNCES ACQUISITION OF PIPELINES, ADDITION OF NEW DIRECTOR

 FORT WORTH, Texas, Jan. 28 /PRNewswire/ -- Arch Petroleum Inc. (NASDAQ: ARCH) announced that it had acquired a 50 percent interest in Onyx Gathering Company, L.C., a company formed to own and operate pipelines in Nueces, Hidalgo and San Patricio Counties, all located in South Texas. Arch said that it had committed to loan up to $2.9 million to Onyx to finance the acquisition and construction of pipelines, two of which are currently in service.
 Onyx has contracted to connect three electric plants to various sources of natural gas by constructing a total of approximately 13 miles of pipeline ranging in size from 8 inches to 12 inches. Onyx has a contract to supply a portion of the base load to the three plants, and will compete to supply the additional quantities of gas which the plants require.
 The president of Onyx is Shane Riley, 37, of Corpus Christi, Texas. Riley has 8 years of experience in the natural gas industry, including managing gas pipelines and gas processing plants, as well as 6 years of prior experience, in oil field services. Randall W. Scroggins, vice president of Arch, will serve as vice president of Onyx.
 Arch President Larry Kalas noted, "Arch's interest in the natural gas gathering, processing and transportation industry is no secret to those who are following our company. We see significant opportunity associated with the increasing recognition that natural gas is a fuel that offers many benefits to the United States. Participation in Onyx aligns Arch with individuals of proven experience in this industry, as well as joining an exciting business opportunity on the ground floor."
 In a separate announcement, Arch said that C. Randall Hill, 34, had been elected a director of Arch on Dec. 31, 1992. Hill, an attorney who formerly practiced law with the Dallas, Texas office of Weil, Gotshal & Manges, is chairman and chief executive officer of Lobo Resources, Inc. of Midland, Texas.
 Arch Petroleum Inc. is an independent oil and gas exploration and production company headquartered in Fort Worth, Texas, with interests in producing properties in Texas, New Mexico, Oklahoma, Louisiana and North Dakota. Arch Production Company is its wholly owned subsidiary. Arch participates in natural gas transmission through its interests in Saginaw Pipeline Company, L.C. and Onyx Gathering Company, L.C.
 -0- 1/28/93
 /CONTACT: Randall W. Scroggins, vice president of Arch Petroleum Inc., 817-332-9209 or 800-772-8558/
 (ARCH)


CO: Arch Petroleum Inc. ST: Texas IN: OIL SU: TNM

PS -- NY036 -- 0172 01/28/93 10:53 EST
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Publication:PR Newswire
Date:Jan 28, 1993
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