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VASTAR AND ENRON AFFILIATE ANNOUNCE EXPLORATION ALLIANCE
FOR IMMEDIATE RELEASE: Wednesday, July 30, 1997
HOUSTON - Vastar Resources, Inc. and an affiliate of Enron Finance Corp. (EFC), a subsidiary of Enron Corp., announced today that they have entered into an onshore oil and gas exploration alliance program.
Under the terms of the agreement, Vastar will act as operator for the alliance, performing 3D seismic studies and drilling a minimum of nine exploratory wells in the Gulf Coast, the Cotton Valley, and the Northern Rockies. Vastar will also contribute land and seismic data. In exchange for an interest in the program, the EFC affiliate will provide capital to help fund the oil and gas exploration activities. Any gas or oil produced as a result of the arrangement will be marketed by the individual companies.
"This relationship with Enron allows Vastar to add significantly to its growing onshore 3D database and participate in numerous quality exploratory wells on a leveraged basis," said Bob Strode, Vastar's exploration and land vice president. "We expect to begin drilling the first well under this program in late August. The 3D activities will begin immediately and should lead to additional exploratory drilling."
"We are pleased to ally with Vastar in this program," said Gene E. Humphrey, president of EFC. "This type of innovative arrangement allows independent oil and gas producers such as Vastar to accelerate their exploration and exploitation activities while expanding Enron's portfolio of producer financing activities."
Vastar Resources, Inc., headquartered in Houston, Texas, finds, develops, produces and markets natural gas and liquid hydrocarbons. Vastar Resources, Inc. is traded on the NYSE under the ticker symbol, "VRI."
Enron Corp., one of the world's largest integrated natural gas and electricity companies with approximately $19 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; is a leading participant in liberalized energy markets in the United Kingdom and the Nordic Countries; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns a majority interest in Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns a majority interest in Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; is one of the largest independent developers and producers of electricity in the world; and is a major supplier of solar and wind renewable energy worldwide. Enron's internet address is www.enron.com and its common stock is traded under the ticker symbol, "ENE."
For additional information please contact:
Terrie James (Enron)
713-853-7727
Lisa Marshall (Vastar-Media)
281-584-3448
Ellen DeSanctis (Vastar-Financial)
281-584-3477
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