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PENNZOIL EMBARKS ON NEW OIL AND GAS STRATEGY, REAFFIRMS DIVIDEND POLICY

PENNZOIL EMBARKS ON NEW OIL AND GAS STRATEGY, REAFFIRMS DIVIDEND POLICY
 HOUSTON, Dec. 11 /PRNewswire/ -- At its meeting on Dec. 10, the board of directors of Pennzoil Co. (NYSE: PZL) authorized a multiyear program designed to refocus its oil and gas activities, with particular emphasis on foreign oil and gas exploration and production, James L. Pate, Pennzoil's president and chief executive officer, said. Briefly stated, the company announced the following:
 -- A shift from being primarily a domestic producer to one that is more focused on foreign exploration, development, and production.
 -- Appointment of a new management team to restructure and re-direct the oil and gas unit for efficient international operations.
 -- Commitment of up to $100 million per year to international E&P efforts.
 "In very recent years, a large number of foreign areas have become accessible to oil and gas exploration and production activities by international oil companies," Pate said. "Many of these areas offer opportunities to develop fields where production is already known to exist. In addition, a number of areas having exciting high-reserve exploration potential are now available. Pennzoil views this as a major business opportunity. While it will continue to develop and produce its U.S. domestic properties and conduct limited U.S. exploration activities, its future principal focus will be on foreign areas," he said.
 Pate announced that Dr. Thomas M. Hamilton, 48, has been appointed to head Pennzoil's oil and gas operations. He replaces William H. Schell, 65, who is retiring. Hamilton has most recently served as chief executive of BP's Frontier and International Operating Co. and a director of BP Exploration. He holds a doctorate in geology from the University of North Dakota and has specialized in identifying and developing numerous foreign oil and gas plays in both developed and emerging countries.
 Also joining Pennzoil at this time are David R. Henderson, 41, senior vice president -- exploration, and Richard S. Langdon, 41, senior vice president. Henderson holds a bachelor's degree in geophysics from Virginia Polytechnic Institute. Most recently, Henderson served as senior vice president for international exploration and production at Maxus Energy Corp. Langdon has served in the oil industry in both domestic and foreign capacities for the past 17 years. He has specialized in financial transactions and restructuring of several exploration and production companies. He has also focused on mergers, acquisitions, and various exploration strategies. Langdon is a graduate of the University of Texas and holds a bachelor's degree in mechanical engineering and a master's degree in business administration.
 Dr. Thomas D. Barrow has been retained to serve as special advisor to Pennzoil's president and CEO, James L. Pate. Barrow has formerly served as vice chairman of Standard Oil Company of Ohio and chairman and CEO of Kennecott, as well as a director of Exxon Corp., in charge of Exxon's worldwide exploration and production activities.
 Pennzoil believes that this management group brings both technological expertise and a significant amount of domestic and, in particular, international experience to Pennzoil. To assure that adequate funding is available to implement this program, the board of directors has authorized the deployment of current assets of Pennzoil of up to $100 million per year for the next three years. This amount is in addition to Pennzoil's 1992 domestic exploration, development, and production budget of approximately $100 million. As a matter of policy, Pennzoil does not intend to incur additional funded debt to finance this program. It does plan, from time to time, to divest certain corporate assets which are not considered strategic to the company's long-term objectives and to redeploy the net proceeds in activities which it believes will be more profitable.
 During the next three years while the company is refocusing its oil and gas activities, it is quite possible that there may be a several- month lag between the initial discovery and subsequent development of foreign reserves and the receipt of cash from such projects. The board of directors does not believe that the possibility of such timing differences is sufficient reason to modify its current dividend policy. At its meeting, the board of directors passed a resolution reaffirming its current expectation of continuing to declare quarterly cash dividends at the company's current annual rate of $3.00 per share.
 -0- 12/11/91
 /CONTACT: Robert Harper of Pennzoil, 713-546-8536/
 (PZL) CO: Pennzoil Co. ST: Texas IN: OIL SU: SM -- NY033 -- 1414 12/11/91 11:23 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Dec 11, 1991
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