Coral Energy's Coal Sale Expands its Supply Portfolio.

HOUSTON--(BUSINESS WIRE)--June 9, 1998--Coral Energy, L.P., one of North America's largest natural gas and power marketers, has expanded its fuel supply portfolio with the recent sale of imported coal to a Texas power plant. The sale was Coral's first coal transaction.

Coral, through its affiliate, Coral Power, L.L.C., purchased 55,000 metric tonnes (60,610 U.S. tons) of Venezuelan coal and shipped it to the U.S. for delivery to Central Power and Light Company's Coleto Creek power station near Victoria, Texas. Coral plans to undertake additional transactions involving coal supplies.

"The addition of coal to Coral's supply portfolio expands our scope as a multi-fuel provider," said Jim Thompson, Coral Energy vice president. "It supports our goal of offering customers total energy management and fuel capability."

"As a multi-fuel provider, Coral can mitigate delivery risk by providing the utility gas or power in the event of a delayed shipment," said Thompson. "In addition, as a major wholesale power trader, Coral is in a position to consider power output as an option in the terms of the transaction."

Coral Energy, a major energy marketing and financial services company, is an affiliate of Tejas Energy, LLC, Shell Oil Company and Shell Canada Limited. It is based in Houston with offices in various locations in the U.S. and Canada.

CONTACT: Coral Energy, L.P., Houston

Jimmy Fox, 713/230-3594