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PARKER & PARSLEY PETROLEUM ANNOUNCES ACQUISITION OF INTEREST IN SPRABERRY GAS PROCESSING PLANTS

 PARKER & PARSLEY PETROLEUM ANNOUNCES ACQUISITION OF INTEREST
 IN SPRABERRY GAS PROCESSING PLANTS
 MIDLAND, Texas, Oct. 22 /PRNewswire/ -- Today Parker & Parsley Petroleum Co. ("Parker & Parsley") (AMEX: PDP) is pleased to announce its agreement with Western Gas Resources Inc. (NYSE: WGR) by which Parker & Parsley will purchase a 20 percent interest in Western's Midkiff and Benedum gas processing plants for $22 million. The agreement is anticipated to close on or before Nov. 23, 1992, with an effective date of Oct. 1, 1992. The agreement provides for a long-term gas contract as well as provisions for increasing Parker & Parsley's ownership in the gas processing plants based upon future expansion of the plants to accommodate the processing of additional gas volumes.
 The management of Parker & Parsley believes the acquisition of interest in the Midkiff and Benedum gas processing plants provide a strategic alliance within the Permian Basin of West Texas with a top quality gas processor and offers significant future potential which complements the company's position as the largest operator in the Spraberry Trend field. Over the next three years, the company has budgeted the drilling of more than 600 new development wells in the Spraberry Trend field. As of Dec. 31, 1991, the Spraberry Trend field represented approximately 87 billion cubic feet of natural gas, 37 percent of the company's total proved gas reserves.
 The Midkiff and Benedum gas processing plants, which gather gas produced primarily from the Spraberry Trend field in the Permian Basin of West Texas, currently process approximately 100 mmcfd of their 113 mmcfd capacity. This production includes approximately 17 mmcfd from Parker & Parsley and its affiliates. These plants serve in excess of 2,500 producing leases.
 In addition, the gas stream from the Spraberry Trend field contains significant amounts of liquid hydrocarbons (NGLs). The plants are designed to remove the NGLs and the remaining residue gas is then ready for delivery to the pipeline for public use. The NGLs are further fractionated into ethane, propane, butane and natural gasoline in order to improve the price which they can be marketed. Through Aug. 31, 1992, the Midkiff and Benedum gas processing plants daily production averaged approximately 15,073 barrels of NGLs.
 Parker & Parsley is an independent oil and gas company with producing properties concentrated in the Permian Basin of West Texas with additional operations in South Texas, Oklahoma, New Mexico, Colorado and Pennsylvania. The company operates 4,250 producing oil and gas wells and is the largest operator in the Spraberry Field of the Permian Basin.
 -0- 10/22/92
 /CONTACT: Herbert C. Williamson, III or Lon C. Kile of Parker & Parsley, 915-683-4768/
 (PDP WGR) CO: Western Gas Resources Inc.; Parker & Parsley Petroleum Co. ST: Texas IN: OIL SU: TNM


MC -- DV003 -- 3256 10/22/92 07:16 EDT
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Publication:PR Newswire
Date:Oct 22, 1992
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