Printer Friendly

NUEVO ENERGY COMPANY ACQUIRES INTEREST IN KANSAS GAS STORAGE SYSTEM

 HOUSTON, Aug. 11 /PRNewswire/ -- Nuevo Energy Company (NYSE: NEV) announced today its acquisition of a 48.5 percent interest in a long-life natural gas storage facility in Morton County, Kan., for $6.4 million.
 The Richfield Gas Storage System, which is connected to four major pipelines, is a depleted natural gas field with related facilities located in the Hugoton area of Morton County in the extreme southwestern corner of Kansas. Natural gas will be stored in two depleted sands within the Morrow formation.
 The field possesses a total working capacity of 5 billion cubic feet (Bcf) of gas, with daily peak withdrawal capacity of up to 100 million cubic feet of gas. Firm gas storage agreements for 3.4 Bcf of gas have been executed for periods ranging from four to eight years.
 "We are excited about the potential for years of positive cash flow from this acquisition in light of its non-depleting nature and the growing need for gas storage," said J.P. Bryan, chairman and chief executive officer. "Additionally," said Bryan, "this expenditure provides Nuevo a low risk, economically attractive investment which has significant upside potential related to uncontracted storage capacity."
 Nuevo is an independent energy company primarily engaged in the acquisition, development, production and exploration of oil and gas properties. Nuevo also owns interests in a natural gas processing plant and gas pipeline and gathering systems. Nuevo's oil and gas properties are primarily located in East Texas, the onshore and offshore areas of the Gulf Coast and Alabama.
 -0- 8/11/93
 /CONTACT: John C. Vanderhider, vice president-Finance of Nuevo Energy, 713-652-0706/
 (NEV)


CO: Nuevo Energy Company ST: Texas IN: OIL SU: TNM

BN-RA -- AT006 -- 1581 08/11/93 10:20 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 11, 1993
Words:285
Previous Article:CompUSA INC. NAMES SECURITY ANALYST NOELLE GREENE-HUNT AS SENIOR DIRECTOR-INVESTOR RELATIONS AND COMMUNICATIONS
Next Article:HBO & COMPANY DECLARES DIVIDEND
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters