NERCO AGREES TO SELL NATURAL GAS FIELD
NERCO AGREES TO SELL NATURAL GAS FIELD PORTLAND, Ore., Sept. 14 /PRNewswire/ -- NERCO Inc.
(NYSE: NER; Toronto) announced its NERCO Oil & Gas subsidiary has signed a definitive agreement to sell its interest in the Trimble Field located in the Salt Basin area of Mississippi, for approximately $32 million. The sale to Scana Petroleum Resources Inc. is expected to be finalized within the next month.
According to NERCO Inc. President & Chief Executive Officer Lawrence E. Heiner, "The sale is part of our ongoing strategy to raise cash for debt reduction and to focus the company's oil and gas activities on its core properties in the Gulf of Mexico region." Included in the transaction are 19 producing wells, undeveloped acreage and other facilities. NERCO has a 95-percent working interest in the field, which has an average gross daily production rate of approximately 25 million cubic feet of natural gas and 60 barrels of condensate. The company expects to incur a pre-tax loss associated with this transaction of approximately $28 million. However, the company previously recorded a $24 million loss in the first quarter of 1992 for potential losses on the sale of oil and gas assets. Therefore, the pre-tax loss in the third quarter from this sale is expected to be approximately $4 million. The company continues to pursue the sale of other selected assets which could result in further losses this year. NERCO Inc. is a diversified natural resource company with interests in low-sulfur coal, oil and natural gas, and precious metals. Approximately 82 percent of NERCO's common stock is beneficially owned by PacifiCorp (NYSE: PPW). -0- 9/14/92 /CONTACT: John C. Cummings, 503-731-6649, or Scott A. Hibbs, 503-731-6723, both of NERCO Inc./ (NER PPW) CO: NERCO Inc.; NERCO Oil & Gas; Scana Petroleum Resources Inc. ST: Oregon, Mississippi IN: OIL SU:
LM -- SE002 -- 8958 09/14/92 09:24 EDT
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|Date:||Sep 14, 1992|
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