COURT DENIES MOTION BY DORCHESTER HUGOTON, LTD.
COURT DENIES MOTION BY DORCHESTER HUGOTON, LTD. DALLAS, Oct. 14 /PRNewswire/ -- Dorchester Hugoton, Ltd.
(NASDAQ-NMS: DHULZ), a Texas limited partnership (the "partnership"), announced today that on Oct. 13, 1992, the Wharton County, Texas District Court denied its motion for partial summary judgment that the 1946 Gas Purchase Contract (the "contract"), with Natural Gas Pipeline Company of America ("NGPL"), will terminate under its terms on Jan. 1, 1993. As a result, the partnership will request an immediate trial setting seeking termination of the contract as of Jan. 1, 1993.
The partnership continues to receive federally mandated "minimum prices" for its Oklahoma natural gas production. On Jan. 1, 1993, this price structure for natural gas will no longer be in effect pursuant to the Natural Gas Wellhead Decontrol Act of 1989. If the contract is no longer in force or effect, the partnership anticipates it will sell its Oklahoma gas on the spot market or under a new contract at current market prices. NGPL opposes the partnership's request for cancellation but was unsuccessful in its attempt to invoke arbitration proceedings with respect to the contract. Should the partnership prevail in the Wharton County, Texas District Court, the partnership anticipates a favorable effect on the partnership's cash flows. Should NGPL prevail, the partnership will then be entitled to receive the contract price of 15.4 cents/MCF (at 14.65 psia) for its Oklahoma gas as set forth in the 1946 gas purchase contract which will have an adverse effect on the partnership's cash flows. Dorchester Hugoton, Ltd., is a Dallas based producer of natural gas and its depositary receipts are traded on the NASDAQ National Market System under the symbol DHULZ. -0- 10/14/92 /CONTACT: Preston A. Peak, president of P.A. Peak, Inc., 214-340-3443, for Dorchester Hugoton/ (DHULZ) CO: Dorchester Hugoton, Ltd.; Natural Gas Pipeline Company of America ST: Texas IN: OIL SU:
GK -- NY069 -- 9983 10/14/92 14:46 EDT
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|Date:||Oct 14, 1992|
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