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WESTERN GAS RESOURCES ANNOUNCES PURCHASE OF MOUNTAIN GAS RESOURCES

 DENVER, March 31 /PRNewswire/ -- Western Gas Resources Inc. (NYSE: WGR) announced today that it has entered into a definitive agreement to purchase all of the outstanding stock of Mountain Gas Resources Inc. ("Mountain Gas") for approximately $130 million and the assumption of the existing debt. Closing is expected to occur on May 1, 1993, with an effective date of Jan. 1, 1993 and will be funded from Western's existing credit facilities.
 The acquisition is comprised of two gathering and processing facilities, the Granger and Red Desert, located in southwestern Wyoming that gather natural gas from 30 producers connected to 300 miles of gathering systems. The plants have a capacity of 190 MMcf per day and in March 1993 were processing approximately 150 MMcf per day of gas and 200 MGal per day of natural gas liquids. Access to numerous major residue gas markets is provided through strategic interconnects with CIG, Questar and Northwest pipelines. Additionally, pipeline access is available to Kerv?er, Trailblazer and local residue markets.
 Mountain Gas is planning to construct a new 100 MMcf per day cryogenic processing plant at the Granger facility with a total expected cost of $10 million. The 100 MMcf cryogenic plant will replace a 100 MMcf refrigeration plant currently in operation at Granger. Operation is scheduled to begin June 1, 1993. The new cryogenic facility will increase total liquids production capabilities by 150 MGal per day.
 Thirty-four new wells were added to the two systems in 1992 with 18 more wells added in the first three months of 1993. There are an additional 24 wells drilling or waiting on connection to the Granger system. Based on Western's drilling projections for the area, throughput volumes at the two plants will approximate 180 MMcf per day by year-end, up from approximately 100 MMcf per day in 1992. Liquids production is expected to average more than 300 MGal per day in 1993, up from approximately 144 MGal in 1992.
 The systems are located near Western's Lincoln Road facility and will strengthen Western's presence in the Green River Basin and southwestern Wyoming. The area is growing due to both the drilling of new wells that extend the area and by infill drilling and is estimated by the U.S. Geological Survey to be one of the largest undeveloped gas resources left in the United States.
 Western owns and operates natural gas gathering and processing facilities and markets and transports natural gas and natural gas liquids. Western is actively pursuing new investment opportunities through both acquisitions and new construction to expand its area of operation and related markets toward its goal of increasing stockholder value.
 -0- 3/31/93
 /CONTACT: Ronald O. Wirth of Western Gas Resources, 800-933-5603/
 (WGR)


CO: Western Gas Resources Inc.; Mountain Gas Resources Inc. ST: Colorado, Wyoming IN: OIL SU:

BB -- DV006 -- 1526 03/31/93 12:58 EST
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Date:Mar 31, 1993
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