Concord Energy signs letter of intent to acquire Colorado-based Integrated Petroleum Systems Corp.

BERNARDSVILLE, N.J.--(BUSINESS WIRE)--Jan. 9, 1996--Jerry Swon, president of CONCORD ENERGY INC. (OTC BULLETIN BOARD: CNCG), today announced that the company has signed a Letter of Intent to acquire privately-held Integrated Petroleum Systems Corp. (IPS) of Englewood, Colo.

Richard Barden, president of IPS, will remain in that executive position, according to Swon.

"IPS has developed and is marketing a proprietary computer software system, APEX(TM), that revolutionizes the collection and distribution of oil and gas field production data, increases productivity, and cuts costs," Swon said.

"The IPS APEX(TM) system allows the oil field employee who checks each well daily to enter production data directly into a hand-held device similar to those used by Federal Express Drivers. At night, he places the device into a recharging cradle and the data is automatically downloaded into the corporation's computer system, allowing immediate access of the data in either numerical or graphical form. In addition, the APEX(TM) software can be fully integrated with the corporation's production accounting and analytical systems," Swon explained.

"This is a tremendous improvement from the way oil field data is normally gathered today. Typically, production data on operating oil and gas wells is collected on paper, with any calculations done manually. The data is then mailed to the home office, where it is entered by hand into company computers. All told, it generally takes in excess of 15 to 30 days for the home-office to receive this data, and it is not uncommon to take 60 to 90 days before it is put in usable form and distributed to management," he continued.

"The APEX(TM) system provides several important benefits for petroleum companies. Having data no more than 24 hours old -- instead of 60 to 90 days old -- allows petroleum engineers to make drilling and production adjustments almost immediately, leading to increases in production from the company's wells. In addition, APEX decreases overhead by eliminating clerical work, resulting in payouts in as little as six months," Swon added.

"APEX(TM) has been widely tested and has been installed at sites in the United States, Canada and Indonesia. The IPS client list already includes Shell Chemical, Cabot Oil & Gas Corp., CNG Producing, and Pan Canadian Petroleum, among others. Negotiations for a number of other large contracts are progressing and are expected to be announced in the near future. In addition, existing clients are now expanding utilization of the APEX system into additional geographical regions now that the product has been fully tested and proven to be successful," according to IPS President, Barden.

Swon further stated, "IPS is our second significant acquisition within the energy sector this past year. KEMCO, which CONCORD acquired in May of 1995, turned our Company around and helped attain record earnings of $407,805 and revenue of $3,180,628 for the first quarter ended September 30, 1995. The significance of both acquisitions is not only diversification within the oil and gas industry but also includes companies that have their own niche and can grow dramatically in either strong or weak oil and gas markets. We are very optimistic about the positive growth and potential of our companies," he concluded.

CONCORD's KEMCO subsidiary provides gas plant design, construction and refurbishing services to the natural gas industry. CONCORD ENERGY INCORPORATED is a rapidly growing diversified energy company with well interests primarily in Texas and Louisiana. CONCORD ENERGY INCORPORATED has applied for NASDAQ listing and expects its shares to begin trading on the NASDAQ system in the near future.

CONTACT: Bruce L. Deichl, 908/766-1020

Howard C. Bronson, 212/867-6160