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TECO ENERGY EXPANDS COALBED METHANE WITH $28 MILLION COMMITMENT

 TECO ENERGY EXPANDS COALBED METHANE WITH $28 MILLION COMMITMENT
 TAMPA, Fla., Aug. 31 /PRNewswire/ -- TECO Energy, Inc. (NYSE: TE) today announced that its subsidiary, TECO Coalbed Methane, Inc., has acquired $18 million in interests from Taurus Exploration, Inc. in two Alabama coalbed methane projects in which the companies are presently teamed.
 In addition, the company has committed to expand its existing projects in Alabama's Black Warrior Basin with the development of 40 new wells by year-end. TECO Energy expects to commit an additional $10 million to this expansion in partnership with Chevron USA.
 "Because of the tax credit we have been pleased with our investments in coalbed methane through the last two years," said Timothy L. Guzzle, TECO Energy chairman and chief executive officer. "Now with higher gas prices they are looking even better. These investments bring our total commitment to this business to a little more than $160 million."
 "Our 400 wells have been producing on schedule," said James K. Taggart, president of TECO Diversified and TECO Coalbed Methane. "TECO Energy's earnings from coalbed methane through the first six months of this year nearly doubled in comparison to the same period last year. We are pleased to have developed these additional opportunities to increase our earnings in a proven business."
 TECO has purchased the remaining 16 percent working interest in the Cedar Cove portion of its joint project with Taurus to become a 100 percent owner in that area. In addition, TECO has expanded its working interest from 44 percent to 51 percent in its joint project with Chevron USA and Taurus.
 Taurus will continue as operator of both projects.
 TECO Coalbed Methane's share of gas production from both projects is now at the rate of about 1.1 billion cubic feet per month. A federal income tax credit, estimated at 96 cents per thousand cubic feet for 1992, is earned on coalbed methane gas produced from the projects' wells through 2002.
 TECO Energy is a diversified energy-related holding company headquartered in Tampa. Its principal operating companies are Tampa Electric Co., TECO Transport & Trade, TECO Coal, TECO Coalbed Methane and TECO Power Services.
 -0- 8/31/92
 /CONTACT: Mike Mahoney of TECO Energy, 813-228-4271 (office) or 813-961-9456 (home)/
 (TE) CO: TECO Energy, Inc.; TECO Coalbed Methane, Inc.; Taurus Exploration,
 Inc. ST: Florida, Alabama IN: UTI SU: JVN TNM


JB-AW -- FL003 -- 4839 08/31/92 09:43 EDT
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Publication:PR Newswire
Date:Aug 31, 1992
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