Dominion E&P Announces Increased Stake in Devil's Tower Deepwater Project.

Business Editors

NEW ORLEANS--(BUSINESS WIRE)--May 3, 2000

Dominion Exploration & Production, Inc., a subsidiary of Dominion (NYSE:D), announced today that it now has a 60 percent interest in the Devil's Tower discovery in the Gulf of Mexico and will operate the deepwater project after the completion of the first appraisal well, which is scheduled to spud in May 2000.

Dominion E&P, formerly CNG Producing Company, had a 30 percent interest in Devil's Tower when the discovery at Mississippi Canyon Block 773 was announced on February 15, 2000, and has acquired the additional 30 percent from Mariner Energy, Inc.

This will be the first deepwater project operated by Dominion E&P, which has five successful deepwater projects and is one of the top independent producers in the Gulf of Mexico.

"Operating a deepwater project is an exciting step for Dominion's offshore exploration and production unit," said Pat Riley, president of New Orleans-based Dominion E&P. "We were one of the first independents to participate in deepwater production in the Gulf of Mexico, and operating our own project is a natural progression for us."

Devil's Tower is located in 5,610 feet of water approximately 140 miles southeast of New Orleans.

Dominion E&P is a non-operating partner on two producing deepwater projects -- Popeye in Green Canyon Block 116 and Neptune in Viosca Knoll Block 826 -- and two deepwater development projects -- North Marlin in Viosca Knoll Block 827 and Einset in Viosca Knoll Block 872/873. Dominion E&P owns interests in 50 deepwater blocks in the Gulf of Mexico.

Mariner will retain a 20 percent interest in Devil's Tower. Other partners are Pioneer Natural Resources Company (15.83375 percent) and Westport Oil and Gas Company, Inc. (4.16625 percent).

Dominion E&P is the Dominion subsidiary that explores for and produces oil and natural gas in the United States and Canada. Its offshore unit is based in New Orleans.

Dominion is the nation's largest fully-integrated gas and electric company. It has four million customers, 20,000 megawatts of electric power generation, nearly 2.8 trillion cubic feet of natural gas and oil reserves, and operates North America's largest natural gas storage system. Dominion is positioned to serve the emerging competitive community of 52 million homes and businesses in the Midwest to Northeast quadrant of the United States.

This press release contains forward-looking statements. The company wishes to caution readers that the assumptions which form the basis for forward-looking statements with respect to or that may impact earnings for fiscal 2000, and thereafter, include many factors that are beyond the company's ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Other factors include, but are not limited to, weather conditions, economic conditions in the company's service territories, fluctuations in energy-related commodity prices, conversion activity, other marketing efforts and other uncertainties.