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QUESTAR ANNOUNCES RESERVE ACQUISITION

 SALT LAKE CITY, Dec. 10 /PRNewswire/ -- Universal Resources Corp., a subsidiary of Questar Corp. (NYSE: STR), today announced it has reached an agreement in principle to purchase certain oil and gas properties in the Midcontinent region from Petroleum Inc. of Wichita, Kan.
 The acquisition, valued at $22.6 million, includes producing and non-producing properties in Oklahoma, Kansas and the Panhandle and western regions of Texas. The package consists of estimated net reserves of 14.5 billion cubic feet (Bcf) of gas and 1,356,000 barrels of oil, along with significant undeveloped leaseholds and additional probable reserves. The purchase price was based on proven reserves verified by an independent reservoir engineer, and resulted in a finding cost of $1 per thousand cubic feet equivalent (Mcfe).
 Petroleum Inc. retained working interests in certain Kansas properties and the west Texas properties and a net profits interest in the undeveloped acreage. Petroleum Inc. remains an active company with ongoing exploration and production in southwestern Kansas and substantial exploration and production in the Rocky Mountain region, including Wyoming, Montana and North and South Dakota.
 Gary L. Nordloh, president and chief executive officer of Questar's exploration and production (E&P) companies, said the agreement will be effective Nov. 1, 1993, subject to final purchase and sale agreements and associated adjustments.
 Nordloh said the acquisition would add 33 percent to reserves owned by Universal Resources on Dec. 31, 1992, and would enhance the company's 1993 production and revenues. He said the purchase "represents a continuation of Questar E&P's successful strategy of expanding the reserve base and production through efficient acquisition and drilling programs."
 Universal Resources and Celsius Energy Co., another Questar E&P affiliate, increased reserves 17 percent after-record production in 1992 to 236 Bcfe, the fifth consecutive annual increase. Through the first nine months of 1993, the two companies replaced reserves while gas production increased 43 percent and oil production rose slightly over the comparable prior-year period.
 Nordloh said the acquired properties in Oklahoma and Texas are near or within current Universal Resources activity areas, while Kansas is a new operating locale for the company.
 The acquisition increases Questar E&P's estimated 1993 capital spending to a record $80 million, and outlays are projected to increase to $91 million in 1994, assuming additional acquisitions. Nordloh said the company is continuing to pursue reserve acquisitions in the $50 million to $100 million range.
 Questar Corp. is an integrated natural gas holding company with subsidiaries that engage in oil and gas exploration and production, interstate natural gas transmission and retail gas distribution. The Questar E&P group consists of Universal Resources, Celsius Energy and Wexpro Co.
 -0- 12/10/93
 /CONTACT: R. Curtis Burnett, (business) 801-534-5541, or (home) 801-942-5171/
 (STR)


CO: Questar Corp. ST: Utah IN: OIL SU: TNM

JB-JL -- LA039 -- 2825 12/10/93 17:44 EST
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Publication:PR Newswire
Date:Dec 10, 1993
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