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SEAGULL ENERGY CORPORATION COMPLETES TWO SEPARATE SALES OF OIL

 HOUSTON, Oct. 1 /PRNewswire/ -- Seagull Energy Corporation (NYSE: SGO) disclosed today that it has completed two separate sales of non-strategic oil and gas producing properties.
 The sales involved parcels in West Texas and the Rocky Mountains. The company estimates that aggregate proved reserves sold totaled the equivalent of approximately 13 billion cubic feet (Bcfe) of natural gas. The properties are being produced at a rate of about 2 Bcfe per year.
 Seagull's net proceeds from the sales totaled $9.9 million, resulting in an after-tax gain to the company of $2.7 million, or 8 cents per share, which will be reflected in earnings for 1993's third quarter ended Sept. 30, 1993.
 Results for that quarter will also include an increase in the company's provision for federal income taxes of approximately $1.2 million, or 3 cents per share, to provide for the effect of higher federal corporate tax rates called for in the Administration's recently enacted tax legislation.
 "Since the major expansion of our reserve base by the acquisition of Arkla Exploration at last year-end, we've indicated plans to upgrade our producing property portfolio," noted Seagull Chairman Barry J. Galt. "These properties produce more oil than gas and are located outside our three core operating regions. We simply found buyers to whom the properties are more valuable than they were to us."
 In addition to its gas and oil exploration and production activity, Houston-based Seagull is engaged in the transportation, distribution and marketing of natural gas, liquids products and petrochemicals, and natural gas processing.
 -0- 10/1/93
 /CONTACT: Alan Payne of Seagull Energy Corporation, 713-951-4700/
 (SGO)


CO: Seagull Energy Corporation ST: Texas IN: OIL SU:

WB -- NY037 -- 7725 10/01/93 10:48 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
Words:286
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