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NAHAMA & WEAGANT TO DEVELOP GAS STORAGE FACILITIES IN OREGON AND CALIFORNIA; ANNOUNCES TWO MORE SUCCESSFUL WELLS IN OREGON

 NAHAMA & WEAGANT TO DEVELOP GAS STORAGE FACILITIES IN OREGON AND
 CALIFORNIA; ANNOUNCES TWO MORE SUCCESSFUL WELLS IN OREGON
 BAKERSFIELD, Calif., July 1 /PRNewswire/ -- Nahama & Weagant Energy Company (NASDAQ: NAWE) announced that it and its partners ("the joint venture") are seeking proposals from third parties who are interested in developing underground gas storage facilities in the company's Mist Gas Field in Northwestern Oregon, near Portland. The joint venture owns three existing potential storage pools which are expected to yield a total working gas volume of 5 billion to 6 billion cubic feet and deliverability of 50 million cubic feet of gas per day. Two storage pools in the field owned by a major Oregon utility are currently in operation and provide the utility with 20 percent of its gas supply during the winter season. "We believe diversifying into gas storage in both Oregon and California provides the company with significant new potential for future growth in cash flow and earnings," said company President Rodney Nahama. "We not only have existing pools, but a number of other properties we own are also good candidates for future conversion to storage."
 The company also announced it had another discovery in its Mist Gas Field. The exploratory well was the first of up to eight wells the company expects to drill in Oregon during 1992 and the sixth discovery of nine exploratory wells it has drilled during the last two years in Oregon. The new well flowed at a daily rate of 370,000 cubic feet of gas on a 16/64 inch choke, with flowing tubing pressure of 540 PSI. It said it also had a successful new development well, also at Mist, which flowed at a daily rate of 1.2 million cubic feet of gas on a 30/64 inch choke, with flowing tubing pressure of 397 PSI. These wells, of which the company owns approximately 41 percent and 25 percent respectively, are expected to begin production during the third quarter of 1992. The company is receiving $1.72 per MMBTU for its gas in Oregon during 1992.
 The company said it is currently drilling its third gas well of 1992 in Oregon, and two gas development wells in the Sacramento Valley of Northern California, one of which is the first of three development locations which the company plans to drill at the company's new gas discovery in the McCormack Gas Field near Sacramento. It said it has reached an agreement to sell gas from its McCormick Field for one year at $1.90 per MMBTU beginning July 1, 1992. "Prices and demand are very strong on the West Coast," said Nahama. "The fact we can command such a high price for our gas in the month of July for a year-long contract is a clear indication of the strength of the gas market in California."
 Based in Bakersfield, Calif., the company is primarily engaged in exploring for, developing and selling natural gas and to a lesser extent, crude oil, primarily in California and Oregon.
 -0- 7/1/92
 /CONTACT: Denis Fitzpatrick of Nahama & Weagant Energy, 805-323-9075, or Sam Witchel of Scharff, Witchel & Co., 212-983-1060, for Nahama & Weagant Energy/
 (NAWE) CO: Nahama & Weagant Energy Company ST: California, Oregon IN: OIL SU: DSC


SM-OS -- NY071 -- 5695 07/01/92 12:17 EDT
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Publication:PR Newswire
Date:Jul 1, 1992
Words:549
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