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ENRON OIL & GAS COMPANY CLOSES PRODUCTION PAYMENT AGREEMENT

ENRON OIL & GAS COMPANY CLOSES PRODUCTION PAYMENT AGREEMENT
 HOUSTON, Sept. 30 /PRNewswire/ -- Enron Oil & Gas Company (NYSE: EOG) announced today that it has sold a volumetric production payment for $326.8 million to Cactus Hydrocarbon 1992-A Limited Partnership.
 Under the terms of the production payment, EOG has conveyed an interest in approximately 124 billion cubic feet equivalent (136 trillion British thermal units) of natural gas and other hydrocarbons in the Big Piney area in Wyoming. The natural gas will be produced and delivered over a period of approximately four years. EOG will be responsible for production and transportation costs associated with operating the properties and delivery of the production payment volumes.
 "I am very pleased with the value generated in this transaction and the increased ability it will provide us to accelerate investments in our operations, through exploration and development drilling and the acquisition of oil and gas property interests," said Forrest E. Hoglund, EOG chairman, president and CEO. "It is anticipated that the proceeds will be used initially to repay debt until additional financing for investments is required," he added.
 EOG will account for proceeds received in the transaction as deferred revenue. Thus, revenue from the transaction will be recorded as production payment volumes are delivered. Concurrent with the closing of the transaction, EOG and an affiliate of Enron Gas Services Corp. modified four pre-existing long-term fixed price natural gas sales contracts, under which EOG deliveries had totaled approximately 140 million cubic feet per day. This modification substantially reduces delivery obligations to approximately 10 million cubic feet per day through June 1996 and changes the pricing mechanism to an indexed basis on the remaining volumes. Contract volumes and indexed pricing after June 1996 were not affected by these modifications.
 EOG is one of the largest independent (non-integrated) oil and gas companies in the United States in terms of domestic proved reserves. The company's reserve base is 90 percent domestic and 93 percent natural gas. EOG is listed on the New York Stock Exchange and is traded under the ticker symbol, "EOG."
 -0- 09/30/92
 CONTACT: Diane Bazelides of Enron Oil & Gas Company, 713-853-6285
 (EOG) CO: ENRON OIL & GAS COMPANY IN: OIL ST: TX -- NY029 -- X389 09/30/92
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Date:Sep 30, 1992
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