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EVN ACQUIRES 50 PERCENT OF RAG

 EVN ACQUIRES 50 PERCENT OF RAG
 VIENNA and NEW YORK, Aug. 28 /PRNewswire/ -- EVN acquires 50 percent


of RAG (Rohol-Aufsuchungs-Gesellshaft m.b.h.) from Mobil Oil Austria and Shell Austria AG;
 -- EVN to acquire 25 percent from Mobil and 25 percent from Shell; (Mobil Oil Corporation, Fairfax USA, will continue to be the operator of RAG)
 -- EVN to pay $98 million (US) for RAG;
 -- Intends to increase their existing gas storage capacity.
 Similar to other Western European countries, the Austrian energy industry is confronted with increasingly high expectations and standards in the field of environmental protection. Consequently, EVN expects to see a sharp rise in demand for environmentally friendly natural gas.
 In addition, only 20 percent of the Austrian gas market is currently supplied domestically. Some 77 percent comes from the CIS (Commonwealth of Independent States) and 3 percent from Germany. A contract signed in 1986 with Norway will take effect from 1993 and is to account for 20 percent of the total Austrian demand.
 These strategic considerations have led EVN to purchase a 50 percent share in RAG (Rohol-Aufsuchungs-Gesellshaft m.b.h.) from Mobil Oil Austria and Shell Austria AG, that is, 25 percent from Mobil and Shell each for a total amount of $98 million (US).
 Through its stake in RAG, EVN intends to increase gas production in Austria as well as increasing its existing storage capacity.
 In 1991, RAG produced 580 million cubic meters of natural gas which accounted for 43 percent of domestic production. In comparison, EVN's natural gas consumption in 1990 totalled 1,551 million cubic meters.
 EVN's stake in RAG helps increase co-operation between Western and Southern gas companies within Austria. It also increases co-operation with Central and Eastern European gas suppliers.
 RAG intends to increase its storage capacity in Puchkirchen to up 450 million cubic meters. In addition, RAG currently has the ability to store some 240,000 tons of oil which can be used in an emergency for commercial purposes.
 'RAG' FACT SHEET
 In 1935, Secony Vaccuum Oil Inc. (today Mobil Oil Corporation) and Bataafsche Petroleum Maatschappij N.V. of the Royal Shell Group together founded Rohol-Aufsuchungs-Gesellshaft m.b.h. ("RAG"). It was hoped that oil could be found in Austria and, therefore, the new company was founded. Today RAG is the oldest of the existing oil companies in Austria.
 HISTORY
 1935 Foundation of RAG
 1936 First deep well drilled
 1937 First successful well strikes oil
 1940 Under German occupation, all previous exploration and
 production rights expire
 1946 Nationalization of all oil companies including RAG
 1955 "Vienna Memorandum," indemnification of RAG for properties
 and concessions lost (with the exception of old concessions)
 1960 Commercial production of gas starts in Ried
 1978 Commissioning of the tank farm at Kremsmunster-Krift
 1982 Construction of underground gas storage facilities at
 Puchkirchen
 8/27/92 Signing of contract: EVN acquires 50 percent of RAG. It has acquired 25 percent each from Mobil Oil Austria AG (Operator) and Shell Austria AG.
 Financial Year 1991
 In 1991, RAG produced approximately 147 tons of oil and 580 million cubic meters of gas. RAG provides just over 11 percent of the domestic oil production and approximately 43 percent of gas production.
 RAG expenditure amounted to ATS281 million. In addition, there was some ATS83 million for exploration costs.
 At the end of the year, the total number of oil outlets was 169, of which 104 are in operation, and 175 gas outlets, of which 105 are in operation.
 On Dec. 31, 1991, RAG had 257 employees.
 -0- 8/28/92
 /CONTACT: Wolfgang Christl, from 9 a.m. until 2 p.m., 011-34-22-36-200-2400; or Michael Langle, from 2 p.m. on, 011-34-22-36-200-2324, both of EVN/ CO: Energie vernunftig nutzen; Rohol-Aufsuchungs-Gesellshaft m.b.h.;
 Mobil Oil Austria; Shell Austria AG ST: New York IN: OIL SU: TNM


SH-OS -- NY020 -- 4347 08/28/92 11:39 EDT
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Date:Aug 28, 1992
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