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NAHAMA & WEAGANT ENERGY COMPANY CLOSES PURCHASE OF BENTON OIL AND GAS CALIFORNIA PROPERTIES

 NAHAMA & WEAGANT ENERGY COMPANY CLOSES PURCHASE OF BENTON OIL
 AND GAS CALIFORNIA PROPERTIES
 BAKERSFIELD, Calif., Oct. 5 /PRNewswire/ -- Nahama & Weagant Energy Company (NASDAQ: NAWE) President Rodney Nahama announced the company has closed its purchase of all of the California gas and oil properties of Benton Oil and Gas Company (BTN) for $2.5 million in cash. "We've already seen significant improvements in our economics since the July 1, 1992 effective date of the purchase because we are able to terminate most of the old BTN gas contracts with PG&E from $1.52 to $1.74 per MMBTU, and negotiate new contracts for up to $2.48/MMBTU. By the end of this year, approximately 80 percent of this production can be contracted with other purchasers who are willing to pay more than the utilities.
 The purchased gas wells are currently producing approximately 3.8 million cubic feet of gas ("MMCF") per day, net of royalties. However, the company has started permitting a development well it plans to drill this year which it expects will increase these rates to approximately 5 MMCF per day. The company also has additional development drilling potential in other locations which could provide it with additional new reserves and cash flow. Nahama said that, even excluding this drilling upside, the higher prices at the purchased gas properties could provide the company an additional benefit of up to $.20 cash flow per share next year. He said the company is also benefiting from higher gas prices in its other locations as well, some of which have reached as high as $2.60/MMBTU compared to $1.70/MMBTU for most of this year.
 The BTN purchase included approximately 4 billion cubic feet of proved developed gas reserves in the Sacramento Valley of Northern California and 700,000 barrels of proved developed oil reserves, primarily in the Round Mountain oil field near Bakersfield, Calif. NAWE will retain approximately 72 percent of the purchased properties, with John Hancock Mutual Life Insurance Company purchasing the remaining interest.
 Based in Bakersfield, Nahama & Weagant Energy Company is an independent oil and gas exploration and production company engaged in oil and gas exploration, development and production, primarily in California and Oregon.
 -0- 10/5/92
 /CONTACT: Denis Fitzpatrick of Nahama & Weagant Energy Company, 805-323-9075, or Sam Witchel of Scharff, Witchel & Co., Inc., 212-983-1060, for NAWE/
 (NAWE) CO: Nahama & Weagant Energy Company; Benton Oil and Gas Company ST: California IN: OIL SU: TNM


SH-OS -- NY030 -- 6489 10/05/92 10:28 EDT
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Publication:PR Newswire
Date:Oct 5, 1992
Words:419
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