Printer Friendly

PENNZOIL TO SELL WEST VIRGINIA NATURAL GAS OPERATIONS

 HOUSTON, Sept. 30 /PRNewswire/ -- Pennzoil Co. (NYSE: PZL) intends to sell its West Virginia natural gas operations in order to focus on the production of crude oil, the company announced today.
 The assets to be sold include a utility that serves 5,000 customers, gas wells, reserves, leaseholds and substantially all of Pennzoil's gas-gathering system in the state. The assets are located throughout 22 counties in western West Virginia, with many of the properties operated continuously since 1889 by Pennzoil and its predecessors.
 Pennzoil Exploration and Production Co. Senior Vice President Michael A. Osborne said, "The sale of these assets is part of Pennzoil's effort to focus on its core businesses and improve efficiencies in its oil and gas operations nationwide." He noted that Pennzoil is not involved in the gas-gathering and utility business in any other state and that the business, though well-established, does not fit with Pennzoil's long-term strategy. "By selling the natural gas operations," he said, "we will be able to put all of our efforts into improving crude oil production through our enhanced recovery program. We believe our major West Virginia fields hold potential for enhanced recovery, provided the fields can be developed and operated in an extremely cost-efficient way." Osborne cited projects in Stringtown and Wolf Summit as examples of Pennzoil's enhanced recovery efforts.
 It is believed that a sale will not be consummated until sometime during 1994. As a result of the sale, Pennzoil anticipates that its West Virginia workforce will be reduced.
 The company has notified the West Virginia Public Service Commission of its intent to seek a purchaser or purchasers of the operations.
 -0- 9/30/93
 /CONTACT: Robert Harper of Pennzoil, 713-546-8536/
 (PZL)


CO: Pennzoil Co. ST: West Virginia IN: OIL SU:

DM-MJ -- PG020 -- 7517 09/30/93 17:27 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:Sep 30, 1993
Words:300
Previous Article:STANDARD & POOR'S STOCK PRICE INDEX -- CLOSING, THURSDAY, SEPT. 30
Next Article:LEADER FINANCIAL CORPORATION COMPLETES PUBLIC OFFERING RAISES $107.5 MILLION
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters