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SEAGULL ENERGY CORPORATION ANNOUNCES DEFINITIVE AGREEMENT

 HOUSTON, Sept. 23 /PRNewswire/ -- Seagull Energy Corporation (NYSE: SGO) announced today that its Seagull Mid-South Inc. subsidiary has entered into a definitive agreement to purchase an interest in a producing natural gas field in East Texas.
 The agreement calls for Seagull to pay $26.6 million for an interest in the Oak Hill field in Rusk County, effective Sept. 1, 1993. The company anticipates closing the purchase, which remains subject to routine regulatory clearances and certain other conditions, within 30 days.
 Independent reserve engineers estimate that the interest Seagull plans to purchase contains proved reserves of 28.7 billion cubic feet (Bcf) of natural gas and 115,000 barrels of condensate, or the equivalent of 29.4 Bcf of gas. Current daily production from the field's 50 wells, net to the interest Seagull is purchasing, totals about 7.5 million cubic feet of gas and 54 barrels of condensate. Approximately half of the reserves to be acquired are classified proved undeveloped.
 "This represents another nice addition to our reserve portfolio, acquired at a good price," noted Seagull Chairman Barry J. Galt. "Oak Hill is in the vicinity of two sizable fields we already operate, so we can assume daily operations efficiently and economically."
 In addition to its gas and oil exploration and production activity, Houston-based Seagull is engaged in the transportation, distribution and marketing of natural gas, liquids products and petrochemicals, and natural gas processing.
 -0- 9/23/93
 /CONTACT: Alan Payne of Seagull Energy Corporation, 713-951-4700/
 (SGO)


CO: Seagull Energy Corporation ST: Texas IN: OIL SU:

TW -- NY020 -- 5130 09/23/93 10:44 EDT
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Publication:PR Newswire
Date:Sep 23, 1993
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