Coral names new president.

HOUSTON--(BUSINESS WIRE)--May 15, 1997--On May 12, 1997, Coral Energy, L.P. Chief Executive Officer, Murry S. Gerber, announced the appointment of Lee K. Barba to the newly created position of President of the large natural gas, power and financial services company, effective April 14, 1997.

Barba comes to Coral with more than 20 years of marketing experience with some of the world's largest financial organizations. Barba most recently served as Senior Managing Director of Bankers Trust where he had responsibility for building the strategic risk advisory business throughout the world to advise major corporations with regard to the identification and management of financial and operating risks.

Barba will be responsible for Coral's marketing activities and corporate growth strategies in gas, power and financing. Since its formation in 1995, Coral has emerged as one of North America's largest gas marketers with gas sales volumes growing from 3.7 billion cubic feet to about 6.2 billion cubic feet daily. The company also initiated power trading in 1996.

"Coral is positioning itself for profitable growth in the rapidly evolving North American energy market," said Gerber. "Lee brings outstanding marketing skills and keen understanding of the interplay between physical trading and financial instruments that distinguishes leaders in this industry."

Prior to his employment with Bankers Trust, Barba served as Managing Director and Co-Head of the Fixed Income Division for PaineWebber. Barba also served as a Vice President with Lehman Brothers. He received an MBA from Columbia University in 1975.

Coral Energy is an independent natural gas, power and financial services company formed in 1995 and jointly held by Shell Oil Company and Tejas Gas Corporation (NYSE: TEJ, TEJPR, TEJPRA). Resources provided by its parent companies include about 4 billion cubic feet per day (Bcf/d) of gas production or gas supplies, more than 5 trillion cubic feet of gas reserves, approximately 10,500 miles of intrastate pipelines with a throughput capacity in excess of 7.5 Bcf/d, 280 interconnects with other interstate and intrastate pipelines and storage of 155 Bcf.

CONTACT: Tejas Gas Corp.

James W. Whalen, [phone]