|
FOR IMMEDIATE RELEASE: Thursday, June 20, 1996
HOUSTON -- Enron Capital & Trade Resources (ECT),
a wholly owned subsidiary of Enron Corp., announced today that
it has reached agreement with Shell Western E&P Inc., a unit
of Shell Oil ("Shell"), to finance onshore oil and gas
exploration and development. ECT will provide a unique financing
structure designed to benefit both parties.
ECT will arrange for a portion of the capital required for Shell
to acquire land, perform seismic studies and drill exploratory
and development wells in the South Louisiana portion of the onshore
Gulf Coast area. As part of the agreement, any gas or oil produced
will be marketed by the parties. ECT plans to invest in, and manage
the investments made by a syndicated group of institutional investors
who are interested in participating in, this innovative financing
arrangement. The association will last a minimum of two years
and could be extended to other areas.
"We are pleased with the alliance we have formed with Shell,"
said Jeffrey K. Skilling, chairman and chief executive officer,
ECT. "By serving as Shell's financial partner as it explores
and develops new wells in South Louisiana, ECT is broadening its
spectrum of financial structures and strengthening its natural
gas marketing capabilities."
"This innovative financial relationship with ECT enables
Shell to participate in a larger share of the industry's 3-D seismic
exploration projects and thereby, grow our onshore U.S. business,"
said Ernie LaFlure, manager, Shell Western Growth Ventures.
Enron Corp., one of the world's largest integrated natural gas
companies with approximately $13 billion in assets, operates the
largest natural gas transmission system in the Western Hemisphere
and the second largest system in the world; is the largest purchaser
and marketer of natural gas and the largest non-regulated marketer
of electricity in North America; produces and markets natural
gas liquids worldwide; owns 60 percent of Enron Oil & Gas
Company, one of the largest independent (non-integrated) exploration
and production companies in the United States; owns 59 percent
of Enron Global Power & Pipelines L.L.C., which is owner and
manager of operating power plants and natural gas pipelines in
emerging markets; and is one of the largest independent developers
and producers of electricity in the world. Enron Corp. is traded
under the ticker symbol, "ENE."
Shell Western E&P Inc. (SWEPI) is the primary domestic, onshore
exploration and production affiliate of Shell Oil Company, Houston.
SWEPI has operations in a dozen key states, from Alabama to Alaska,
but does not operate in California. It produces nearly 100,000
barrels of oil a day and more than 650 million cubic feet of gas
daily.
For additional information please contact:
Carol Hensley
(713) 853-6498
 |
