ENRON CAPITAL & TRADE RESOURCES SIGNS FINANCING AGREEMENT WITH UNIT OF SHELL OIL.HOUSTON--(BUSINESS WIRE)--June 20, 1996--Enron Capital & Trade Resources (ECT ECT electroconvulsive therapy. ECT abbr. electroconvulsive therapy ECT Electroconvulsive therapy sometimes is used to treat depression or mania when pharmaceutical treatment fails. ), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Enron Corp., announced today that it has reached agreement with Shell Western E&P Inc., a unit of Shell Oil ("Shell"), to finance onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. oil and gas exploration and development. ECT will provide a unique financing structure designed to benefit both parties. ECT will arrange for a portion of the capital required for Shell to acquire land, perform seismic studies and drill exploratory and development wells in the South Louisiana portion of the onshore Gulf Coast area. As part of the agreement, any gas or oil produced will be marketed by the parties. ECT plans to invest in, and manage the investments made by a syndicated group of institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. who are interested in participating in, this innovative financing arrangement. The association will last a minimum of two years and could be extended to other areas. "We are pleased with the alliance we have formed with Shell," said Jeffrey K. Skilling, chairman and chief executive officer, ECT. "By serving as Shell's financial partner as it explores and develops new wells in South Louisiana, ECT is broadening its spectrum of financial structures and strengthening its natural gas marketing capabilities." "This innovative financial relationship with ECT enables Shell to participate in a larger share of the industry's 3-D seismic exploration projects and thereby, grow our onshore U.S. business," said Ernie LaFlure, manager, Shell Western Growth Ventures. Enron Corp., one of the world's largest integrated natural gas companies with approximately $13 billion in assets, operates the largest natural gas transmission system in the Western Hemisphere Western Hemisphere Part of Earth comprising North and South America and the surrounding waters. Longitudes 20° W and 160° E are often considered its boundaries. and the second largest system in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ; produces and markets natural gas liquids worldwide; owns 60 percent of Enron Oil & Gas Company, one of the largest independent (non- integrated) exploration and production companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; owns 59 percent of Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines in emerging markets; and is one of the largest independent developers and producers of electricity in the world. Enron Corp. is traded under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors , "ENE." Shell Western E&P Inc. (SWEPI) is the primary domestic, onshore exploration and production affiliate of Shell Oil Company, Houston. SWEPI has operations in a dozen key states, from Alabama to Alaska, but does not operate in California. It produces nearly 100,000 barrels of oil a day and more than 650 million cubic feet of gas daily. CONTACT: Carol Hensley, Enron Corp., 713/853-6498 |
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