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ARCO CONSIDERS PUBLIC OFFERING BY NATURAL GAS SUBSIDIARY

 LOS ANGELES, Nov. 22 /PRNewswire/ -- ARCO's board of directors today approved investigation of a possible initial public offering by its wholly owned and separately incorporated subsidiary, Vastar Resources Inc. (VRI).
 VRI is the largest of four companies formed last month in a reorganization of ARCO's Lower 48 oil and gas exploration and production activities. It was formerly identified as the Natural Gas Growth unit.
 ARCO anticipates that less than 18 percent of VRI common stock would be issued to the public. The remaining 82 percent would continue to be owned by ARCO.
 VRI is an exploration and production company, predominantly natural gas, with properties located primarily in the Gulf of Mexico, Gulf Coast, and Mid-Continent.
 As of Jan. 1, 1993, producing properties held by VRI had proved reserves of 2.1 trillion cubic feet of natural gas and 100 million barrels of oil and natural gas liquids. Current production approximates 680 million cubic feet of natural gas per day and 45,000 barrels of oil per day.
 While VRI is considering filing a registration statement with the Securities and Exchange Commission that would include a prospectus relating to a potential public offering, no assurances can be made that the filing will take place or that any subsequent offering would be completed.
 In a separate transaction, VRI has retained Morgan Guaranty Trust Company of New York as its agent in arranging a $1.25 billion revolving credit/term loan. Repayment of the loan is expected to be the sole obligation of VRI.
 It is expected that VRI will draw down the entire amount of the credit facility and use substantially all the proceeds to pay a special distribution to ARCO.
 -0- 11/22/93
 /CONTACT: Albert Greenstein of ARCO, 213-486-3384/


CO: ARCO; Vastar Resources Inc. ST: California IN: OIL SU: OFR

LM-JB -- LA003 -- 6912 11/22/93 15:35 EST
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Publication:PR Newswire
Date:Nov 22, 1993
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