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Enron Oil & Gas Subsidiary Signs Cooperative Agreement
To Evaluate Incremental Development in China's Sichuan Basin
FOR IMMEDIATE RELEASE: Tuesday, June 25, 1996
HOUSTON -- A subsidiary of Enron Oil & Gas Company (EOG), today announced the signing of a cooperative agreement with the Chinese National Petroleum Corporation (CNPC) to evaluate the potential development of new production and to study the possible enhancement of current production in the Sichuan Basin of the People's Republic of China.
The agreement calls for a 13-month evaluation of the 19,000 square kilometer Chuanzhong Block, which is located in the center of one of China's oldest producing areas and contains several fields currently producing both crude oil and natural gas.
"We are pleased to have been chosen by CNPC to participate in this initial study. If successful, the project could culminate in an agreement for the joint development and production enhancement of the Chuanzhong Block in cooperation with CNPC," said Forrest E. Hoglund, chairman, president and chief executive officer of EOG.
After completion of the initial portion of the study and following a period of joint review with CNPC, pilot tests are planned to determine the future economic viability of the properties prior to further development. EOG is expected to fund the initial study.
Enron Oil & Gas Company, owned approximately 60 percent by Enron Corp., is one of the largest independent (non-integrated) oil and gas companies in the United States in terms of domestic proved reserves and is the operator of substantial reserves in Canada, India and Trinidad. The company’s year-end 1995 reserve base was 88 percent in North America and 92 percent natural gas. EOG is listed on the New York Stock Exchange and is traded under the ticker symbol, “EOG.”
For additional information please contact:
A. H. Davis
(713) 853-6941
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