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TRANSCO SETTLES CHALLENGER LITIGATION

 TRANSCO SETTLES CHALLENGER LITIGATION
 HOUSTON, May 8 /PRNewswire/ -- Transco Energy Company (NYSE: E)


today announced it has settled the long-standing litigation between its subsidiary, Transcontinental Gas Pipe Line Corporation ("TGPL"), and Challenger Minerals Inc., a wholly owned subsidiary of Global Marine Inc. (NYSE: GLM). The settlement agreement fully resolves all outstanding claims in Challenger's $260 million lawsuit. As a result, Transco will record a charge to first quarter earnings of $19.5 million, or $.66 per share, net of a previously established reserve.
 Transco President and Chief Executive Officer John P. DesBarres said, "This is very good news for Transco. This settlement resolves TGPL's last remaining significant take-or-pay lawsuit and eliminates much of the uncertainty surrounding implementation of Transco's strategic and financial plan." DesBarres noted that the settlement was structured to minimize current cash requirements and the impact on Transco's equity account. Under the terms of the agreement, Transco will pay $20 million to Challenger in May and will make eight quarterly payments of $2.5 million beginning in October 1993. In addition, Transco will place into escrow at closing 1.5 million shares of newly issued common stock. The number of shares Challenger ultimately receives will be determined by dividing $15 million by Transco's average stock price during January 1994, subject to certain adjustments, with Challenger receiving a minimum of 750,000 shares. DesBarres said that the issuance of $15 million in value of common stock will offset most of the impact of the charge on stockholders' equity.
 DesBarres explained, "Basing the settlement's share determination formula on a period some 18 months from now provides us with time to complete most of the elements of our financial restructuring on schedule." DesBarres added that Transco's bank group strongly supports the settlement and that with the litigation resolved, the company has greater flexibility to pursue its financing plan, including non-bank debt financing and the sale of equity when appropriate, to satisfy its funding requirements, including seasonal working capital needs during the coming summer.
 Transco Energy Company transports natural gas through its interstate pipeline systems to markets in the eastern and midwestern United States, arranges for the transportation and sale of natural gas throughout the United States, and is active in independent power generation and natural gas vehicle fueling services. Transco also maintains modest positions in other energy-related businesses.
 -0- 5/8/92
 /CONTACT: Katherine K. Putnam (media), 713-439-2455, or R. Dean Ayers (analysts), 713-439-2593, both of Transco/
 (E) CO: Transco Energy Company ST: Texas IN: OIL SU:


GK -- NY010 -- 7960 05/08/92 08:58 EDT
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Date:May 8, 1992
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