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ENERGY DEVELOPMENT BUYS WORKING INTEREST IN OIL FIELD IN ARGENTINA

ENERGY DEVELOPMENT BUYS WORKING INTEREST IN OIL FIELD IN ARGENTINA
 HOUSTON, Nov. 12 /PRNewswire/ -- Energy Development Corporation (EDC) has announced the purchase this year of an 11.25 percent working interest in an oil-producing field in Argentina, as part of a developing strategy to expand operations into foreign countries.
 John F. Schwarz, president of EDC, said the company has made an initial investment of $23 million to acquire partial ownership of El Tordillo Field in Chabut Province, a major oil- and gas-producing area of Argentina. The field has been developed by YPF, the national oil company of Argentina, and interests are being marketed to private investors as part of Argentina's effort to privatize its oil and gas industry.
 El Tordillo Field is currently producing about 13,000 barrels of oil per day. EDC's investment in the field resulted in a 91 percent increase in its year-end 1990 proven oil reserve base, which was approximately 17.4 million barrels. (EDC's principal reserves consist of natural gas, which amounted to about 550 billion cubic feet at year- end 1990.)
 "EDC's purchase of a working interest in the Argentina field," said Schwarz, "represents an early step in an evolving strategy to add additional value and earnings through selected foreign opportunities. Unlike the United States, many foreign areas are relatively unexplored, which provides a chance of finding larger reserves at lower costs."
 Schwarz said EDC is becoming involved in foreign activities because of the increasing difficulty to maintain or expand its reserve base in the United States and because many foreign countries are now providing improved incentives to attract capital into oil and gas exploration.
 "EDC's focus will continue to be on domestic projects," Schwarz said, "but the company will also carefully consider opportunities in foreign countries which appear meaningful and economically attractive."
 He said El Tordillo Field in Argentina provides long-term potential. Oil from EDC's interest in the field is being sold in the world market at competitive prices.
 EDC, a wholly owned indirect subsidiary of Public Service Enterprise Group Incorporated (NYSE: PEG), is an oil and gas exploration and production company headquartered in Houston, Texas, with domestic operations both onshore and offshore in states bordering the Gulf of Mexico and foreign interests in several countries.
 -0- 11/12/91
 /CONTACT: John F. Schwarz of EDC, 713-750-7300/
 (PEG) CO: Energy Development Corporation; Public Service Enterprise Group ST: Texas, Pennsylvania IN: OIL SU: TNM FC-OS -- NY051 -- 3466 11/12/91 12:28 EST
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Publication:PR Newswire
Date:Nov 12, 1991
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