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MITCHELL ENERGY CONSOLIDATES THREE DISTRICT OFFICES

 MITCHELL ENERGY CONSOLIDATES THREE DISTRICT OFFICES
 THE WOODLANDS, Texas, April 27 /PRNewswire/ -- As part of a


previously announced reorganization of its Exploration and Production Division, Mitchell Energy & Development Corp. (AMEX: MND) is closing its district offices in Denver, New Orleans and Oklahoma City and consolidating their functions at the company's headquarters here.
 The company said that in light of current gas market conditions, it is trimming back on exploration and concentrating for the time being on development of its existing oil and gas properties and on possible acquisitions. The reorganization is part of an overall plan to improve the company's competitiveness and enhance shareholder value. It should be fully implemented in the current fiscal year, the company said.
 The consolidation will entail some transfers to company headquarters, but approximately 30 employees at various locations are being laid off in connection with the office closings. Severance payments and outplacement services are being provided to the affected employees.
 Earlier this month Mitchell Energy announced a voluntary early retirement program for eligible Exploration and Production Division employees. A number of people already have opted to retire early under the program, which is still in effect. The company declined to provide further details.
 The cost of the reorganization and other aspects of the competitiveness enhancement plan will entail a charge against first- quarter earnings, but the amount has not yet been determined, the company said.
 "The cutbacks are being undertaken as a result of today's abysmally low prices, which make it unprofitable to explore for natural gas in higher risk areas," said company Chairman and President George P. Mitchell. "In the current market, we will concentrate most of our efforts on development of our substantial backlog of undrilled wells in proven areas, such as North Texas, southeastern New Mexico, East Central Texas and the Texas Gulf Coast." He said the company has between 700 and 1,300 such well sites yet to be drilled, and may acquire additional properties as other domestic energy companies shift their emphasis overseas.
 Mitchell said his company is somewhat insulated from low natural gas prices because more than half of its gas is under contract at good prices, and because low spot-market prices help improve margins on natural gas liquids (NGLs), Mitchell Energy's biggest money maker.
 "We buy more gas than we sell on the spot market in order to make up for fuel consumption and volume reductions associated with NGL extraction," Mitchell said.
 Mitchell Energy & Development Corp. is a large independent producer of natural gas, gas liquids and crude oil. The company also is a major real estate developer in the Houston-Galveston area.
 -0- 4/27/92
 /CONTACT: Tony Lentini or Charles Simpson both of Mitchell Energy & Development, 713-377-5650/
 (MND) CO: Mitchell Energy & Development Corp. ST: Texas IN: OIL SU:


SH -- NY053 -- 3089 04/27/92 11:25 EDT
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Date:Apr 27, 1992
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