HOUSTON - Dominion Exploration & Production, Inc. will
assume operation of more than 800 coal-bed methane wells located in Tuscaloosa,
Alabama, from its partner, ConocoPhillips (NYSE: COP). The effective date of
the transaction is December 31, 2002. Dominion E&P is a wholly owned subsidiary
of Dominion (NYSE: D).
ConocoPhillips currently acts as contract operator for the
Black Warrior project, a 532-well development in which Dominion E&P has
an approximately 98 percent working interest. In addition, ConocoPhillips operates
the jointly owned Whitson project where Dominion E&P is the majority owner.
ConocoPhillips' working interest in the Whitson project will increase as a result
of this transaction.
Duane C. Radtke, president and chief executive officer of
Dominion E&P, said: "With this agreement, Dominion E&P accomplishes
its objective to operate its high working interest properties in the Black Warrior
Basin. Dominion has been pleased with the relationship with ConocoPhillips and
looks forward to a continued partnership while growing these assets and pursuing
other opportunities in the area."
Within the Black Warrior project, Dominion Resources Black
Warrior Trust (NYSE: DOM) also owns an overriding royalty interest in the 532
wells subject to an overriding royalty conveyance effective June 1, 1994.
Dominion has a diversified and integrated energy portfolio
consisting of about 24,000-megawatts of generation, 5.7 trillion cubic feet
equivalent of natural gas reserves, nearly 7,700 miles of natural gas transmission
pipeline and the nation's largest underground natural gas storage system with
more than 960 billion cubic feet of storage capacity. Dominion also serves over
3.8 million franchise natural gas and electric customers in five states. In
addition, Dominion owns a managing equity interest in Dominion Fiber Ventures,
LLC, owner of Dominion Telecom. For more information about Dominion, visit the
company's web site at www.dom.com.
