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HS RESOURCES ANNOUNCES PRODUCTION NORMALIZED AFTER AMOCO PLANT UPGRADE

 SAN FRANCISCO, Jan. 14 /PRNewswire/ -- HS Resources Inc. (HSRS) (NASDAQ: HSRS) announced that production has normalized after the Amoco Wattenberg Processing Plant experienced operational difficulties in connection with a scheduled modification designed to increase inlet capacity from 170 to 200 million cubic feet of gas (MMcf) per day and to increase natural gas liquids recoveries from 11,000 to 17,000 barrels per day.
 According to Amoco, the primary cause of the plant downtime was leaking flanges on the demethanizer reboiler. Experts from several technical disciplines were brought in to solve the problem, and ultimate solution of the problem involved flanges machined on site to correct the tolerances and subsequently sealed via the "Furmanite" process.
 The upgrade had been scheduled to take about three days. However, repeated attempts to restart the plant were unsuccessful, extending the shut-in to a total of about three weeks, including the Christmas holidays. Although HSRS has contractual flexibility in its arrangements with Amoco to process gas through alternate facilities, the sequential nature of the start-up problems and attendant delays made scheduling such alternative arrangements appear unnecessary on a day-to-day basis, particularly after prior upgrades did not experience similar delays.
 The operational difficulties experienced by the plant will impact HSRS' reported production and revenues for the fourth quarter and for the year ended Dec. 31, 1993. Preliminary estimates are that the downtime caused production interruptions of about 1,000 MMcf of gas and 120,000 barrels of oil. Preliminary estimates also are that, despite the plant shut-down, actual production will be approximately 65% higher than the prior year. Amoco has assured HSRS that the problem has been cured and that its plant now has excess processing capacity. The company's current production levels are in excess of those prior to the plant shut-downs, and should offset part of the production lost during the fourth quarter of 1993.
 HS Resources Inc. is one of the most active independent oil and gas operators in the Rocky Mountain region. The company's activities are concentrated in the Denver-Julesberg Basin of northeast Colorado. HSRS also has significant acreage positions in the Hugoton Embayment, the Williston Basin and the Sand Wash Basin.
 The company's common stock is traded on the NASDAQ system under the HSRS symbol.
 -0- 1/14/94
 /CONTACT: P. Michael Highum of HS Resources, 303-572-1400/
 (HSRS)


CO: HS Resources Inc. ST: California, Colorado IN: OIL SU:

TM-LW -- SF003 -- 2019 01/14/94 07:30 EST
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Publication:PR Newswire
Date:Jan 14, 1994
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