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SONAT INC. ANNOUNCES CLOSING OF SONAT OFFSHORE DRILLING INC. INITIAL PUBLIC OFFERING OF COMMON STOCK

 BIRMINGHAM, Ala., June 7 /PRNewswire/ -- Sonat Inc. (NYSE: SNT) announced today that the initial public offering of shares in its subsidiary, Sonat Offshore Drilling Inc. (NYSE: RIG), closed on Friday, June 4. Sonat Offshore issued 15.5 million shares at $22 per share in the transaction.
 The underwriting group, led by Goldman, Sachs & Co., exercised an overallotment option granted to the underwriters by Sonat Inc. to purchase an additional 1.448 million shares. Sonat Inc. retained ownership of approximately 40 percent of Sonat Offshore's outstanding shares. Sonat Offshore used the proceeds of the transaction to repay debt owed to Sonat Inc. and to pay a special dividend to Sonat Inc.
 Sonat Inc. realized net cash from the transaction after expenses and tax provisions of approximately $339 million and expects to recognize a gain from the transaction in the second quarter of approximately $100 million or $2.31 per share. Sonat Inc. intends to reinvest the cash proceeds in its core businesses, which are oil and gas exploration and production and interstate natural gas transmission.
 Sonat Inc., headquartered in Birmingham, Ala., is a worldwide energy company engaged in natural gas transmission and marketing, oil and gas exploration and production and has significant investments in the oil field services industry.
 -0- 6/7/93
 /CONTACT: Thomas W. Barker, Jr., 205-325-3586, or Bruce L. Connery, 205-325-3898, both of Sonat/
 (SNT RIG)


CO: Sonat Inc.; Sonat Offshore Drilling Inc. ST: Alabama IN: OIL SU: OFR

BR -- AT002 -- 5838 06/07/93 09:04 EDT
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Publication:PR Newswire
Date:Jun 7, 1993
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