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KCS ENERGY COMPLETES FOURTH NEW GAS WELL IN SOUTH TEXAS INCREASES PRODUCTION UNDER ABOVE-MARKET PRICE CONTRACT

    HOUSTON, Aug. 5 /PRNewswire/ -- KCS Energy (NYSE: KCS) today announced it has completed the Jesus Yzaguirre No. 5, its fourth new well in the Falcon/Bob West Field in Zapata County, Texas.  Production from this well is sold under a long-term, above market price contract.
    C.R. Devine, KCS Energy vice president, said the Jesus Yzaguirre No. 5 is producing 7,700 Mcf per day from a series of Wilcox age sands encountered at a measured depth of 10,898 to 11,884 feet on a 20/64 inch choke with 3,620 Psig flowing tubing pressure.
    He also reported that current production from the Jesus Yzaguirre No.'s 2, 3 and 5 wells is now in excess of 17,000 Mcf per day, representing an increase of more than 100 percent compared to an average of approximately 7,400 Mcf per day for the quarter ended June 30, 1993.
    Mr. Devine said remedial work is currently being performed on the Jesus Yzaguirre No. 4 well, which is anticipated to be back on production by the end of the month.  He said drilling has commenced on the Jesus Yzaguirre No. 6 and that further development of the field would continue.
    Production from these wells, which are 100 percent owned by KCS Energy, is under contract to Tennessee Gas Pipeline until January 1999. KCS also sells approximately 5,000 Mcf per day under the subject contract from jointly owned acreage.  July contract pricing was approximately $7.65 per MMbtu, including reimbursement of severance taxes.  A Texas court ruling in June 1992, upholding the contract is under appeal by Tennessee Gas.
    KCS Energy is engaged in oil and gas exploration and production, natural gas transportation, natural gas marketing and Energy services with operations in Texas, Louisiana, Mississippi, New York, New Jersey, Virginia and Pennsylvania.
    -0-             08/05/93
    CONTACT:  Henry A. Jurand of KCS (in New Jersey), 908-632-1770, or C.R. Devine of KCS (in Houston), 713-877-8006, or Cindy Knoebel of Financial Relations Board, 212-661-8030, for KCS
    (KCS) CO:  KCS ENERGY, INC. IN:  OIL ST:  TX


-- NY076 -- X308 08/05/93
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Publication:PR Newswire
Date:Aug 5, 1993
Words:349
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