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WESTERN GAS RESOURCES COMPLETES MOUNTAIN GAS RESOURCES ACQUISITION

 DENVER, July 29 /PRNewswire/ -- Western Gas Resources Inc. (NYSE: WGR) announced today that it completed the previously announced purchase of Mountain Gas Resources Inc. The total consideration was approximately $164.6 million, including transaction costs and the assumption and payoff of certain long-term debt as of the closing. The transaction was funded from Western's existing bank credit facilities and has an effective date of Jan. 1, 1993.
 The acquisition is comprised of two gathering and processing facilities, the Granger plant (of which Western has acquired a 78 percent interest) and the Red Desert plant, both located in the Green River Basin of southwestern Wyoming. The plants are connected to 300 miles of gathering lines and have a capacity of 250 MMcf per day. The Granger plant consists of an 80 MMcf/D refrigeration unit and a 30 MMcf/D cryogenic unit. A new 100 MMcf/D cryogenic processing plant at Granger is presently in the start-up stage and is expected to be fully operational by the fourth quarter of 1993. The addition of this unit is expected to increase total natural gas liquids production capabilities at Granger to 390 MGal/D. As of July 1, 1993, the Granger plant was processing approximately 135 MMcf/D of gas and producing approximately 150 MGal/D of liquids. The Red Desert facility consists of a 40 MMcf/D cryogenic unit and as of July 1, 1993 was processing approximately 25 MMcf/D of gas and producing 60 MGal/D of natural gas liquids.
 Higher gas prices have contributed to the recent drilling upturn in southwestern Wyoming which, in turn, has caused increased well connections and throughput and production volumes. Based on the company's drilling projections for the area, throughput volumes for the two systems will approximate 200 MMcf/D by year-end, up from approximately 117 MMcf/D in 1992. Liquids production is expected to average more than 300 MGal/D in 1993, up from approximately 167 MGal/D in 1992.
 The Mountain Gas acquisition will enhance Western's marketing efforts through access to numerous major residue gas markets provided by strategic interconnects with CIG, Questar and Northwest pipelines. Additionally, pipeline access is available to Kern River, Trailblazer and local residue markets.
 This acquisition represents a major growth opportunity for Western. The systems are located near Western's Lincoln Road facility and will increase the company's gas and liquids production volumes as well as strengthen Western's presence in southwestern Wyoming. This region has become a leading area for new gas well drilling and is estimated by the U.S. Geological Survey to be one of the largest undeveloped gas resources left in the United States. Western intends to be very aggressive in hooking up new wells and developing other opportunities in the area.
 Western owns and operates natural gas gathering and processing facilities and markets and transports natural gas and natural gas liquids. The company is actively pursuing new investment opportunities through both acquisitions and new construction to expand its area of operations and related markets toward its goal of increasing stockholder value.
 -0- 7/29/93
 /CONTACT: Ron Wirth or Teresa Massaro of Western Gas Resources, 800-933-5603/
 (WGR)


CO: Western Gas Resources Inc.; Mountain Gas Resources Inc. ST: Colorado IN: OIL SU:

MC -- DV003 -- 7492 07/29/93 11:56 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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