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Gas News Release
August 29, 2000
Dominion Acquires Texas Gulf Coast Gas Fields
HOUSTON – Dominion Exploration & Production, Inc., a
subsidiary of Dominion (NYSE: D) has acquired the operating interests of Suemaur
Exploration & Production, LLC and several partners in three Texas Gulf Coast
natural gas fields.
Dominion now owns and operates the Bluntzer Field, a Vicksburg
discovery made in western Nueces County by Suemaur in early 1999. The field
produces a total of about 24 million cubic feet of natural gas and 450 barrels
of oil a day and has significant opportunity for additional development drilling.
"This transaction is part of Dominion’s strategy of
expanding its presence along the Gulf Coast and in south Texas through a mix
of exploratory and development drilling combined with selective property acquisitions,"
said Jerry Schuyler, senior vice president and general manager of Dominion E&P’s
onshore unit.
As part of this strategy, Dominion is currently drilling
several exploratory wells in targeted prospects along the Texas Gulf Coast.
Additional development drilling continues in several onshore fields acquired
in recent transactions.
This year, Dominion’s onshore acquisitions have added over
48 million cubic feet of of natural gas equivalent (MMcfe) per day to U.S. production.
Over the last 18 months, Dominion has acquired interests in five onshore Texas
fields, boosting net production from the area by over 115 MMcfe per day and
increasing reserves by about 270 billion cubic feet of natural gas equivalent.
With E&P activities in North America only, Dominion has
net reserves of over 2.8 trillion cubic feet of natural gas equivalent. Net
production now stands at just over 900 MMcfe per day. For 2000, about 41 percent
of Dominion’s production is expected to be from offshore U.S., 39 percent from
onshore U.S., and 20 percent from Canada.
Dominion, based in Richmond, Va., is the nation’s largest
fully integrated electric power and natural gas company. It is one of the nation’s
largest independent producers of natural gas and oil and has E&P business
units headquartered in three cities: offshore U.S. headquarters in New Orleans,
onshore U.S. headquarters in Houston and Canadian headquarters in Calgary.
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Contact:
Media: Rodney Ackerman, (504) 593-7470
Analyst: Thomas Wohlfarth, (804) 819-2150
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