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MCN CORP. INCREASES GAS EXPLORATION & PRODUCTION PROGRAM; REORGANIZES GAS MARKETING ACTIVITIES

 DETROIT, July 13 /PRNewswire/ -- MCN Corporation (NYSE: MCN) today announced that it plans to invest up to $40 million in additional exploration and production projects, primarily in northern Michigan, during 1993. MCN plans to drill more than 100 natural gas wells in shallow Devonian (Antrim) shale formations in partnership with several natural gas producers. Some of the exploration and production projects will be in gas-producing areas in the southern United States.
 According to Patrick J. Scullion, President and Chief Executive Officer of MCN Investment Corporation (MCNIC), a nonutility subsidiary of MCN Corporation, "We see these exploration and production projects as providing long-term gas supplies for our marketing subsidiary and future cogeneration projects as well as presenting opportunities for attractive investment returns."
 In 1992, MCN announced a $65-million, 300-plus gas well exploration and production program with significant gas production expected to begin in the second half of 1993. Scullion noted that the company will evaluate, and may make additional investments in gas exploration in 1994, in line with its five-year strategy of investing $150- to $300 million in such projects.
 MARKETING REORGANIZATION
 The company also announced it has combined the gas marketing activities of two of its subsidiaries -- MichCon Trading Company (MTC) and CoEnergy Ventures, Inc. (CVI) -- which will operate as a new, single unit -- CoEnergy Trading Company. CoEnergy Trading will be a subsidiary of MCNIC.
 CVI, formed in late 1989, has been selling natural gas to utilities and large-volume customers in Michigan and other states in the Midwest and Canada. In 1992, CoEnergy Ventures gas sales totaled nearly 15 billion cubic feet (Bcf).
 MichCon Trading Company has been a broker of natural gas to more than 700 industrial and commercial customers throughout Michigan. In 1992, MichCon Trading posted gas sales of 109 Bcf.
 According to MCN Chairman, President and Chief Executive Officer Alfred R. Glancy III, "With the evolution of the natural gas market over the past few years and recent regulatory developments, it is no longer necessary for MCN to maintain separate marketing subsidiaries to serve different customer groups."
 In conjunction with the reorganization, MCN has appointed Rai P.K. Bhargava as Executive Vice President and Chief Operating Officer of MCNIC with responsibility for overseeing day-to-day operations of MCN's nonutility gas-related businesses. Bhargava was formerly Vice President of Marketing for MichCon and President of MTC. Don Samburg, formerly President of CVI, has been appointed President at CoEnergy Trading Company. Howard L. Dow III, formerly Vice President of Rates and Regulatory Affairs for MichCon, has been appointed Vice President of Marketing and Regulatory Affairs at MichCon, combining Rai Bhargava's MichCon marketing responsibilities with his prior regulatory affairs responsibilities.
 MCN Corporation is the holding company for Michigan Consolidated Gas Company, a natural gas distribution, transmission and storage company serving 1.1 million customers in more than 500 communities throughout Michigan; for Citizens Gas Fuel Company, a Michigan natural gas utility; and for MCN Investment Corporation, which owns subsidiaries in the gas services, computer operations services and natural gas technology businesses.
 -0- 7/13/93
 /CONTACT: For security analysts, Sebastian Coppola, 313-256-6324, or for news media, David Coulter, 313-256-5986, both of MCN Corporation/
 (MCN)


CO: MCN Corporation; MichCon Trading Company; CoEnergy Ventures; Inc. ST: Michigan IN: OIL UTI SU: RCN

SB -- DE009 -- 0921 07/13/93 13:26 EDT
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Publication:PR Newswire
Date:Jul 13, 1993
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