THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, March 19, 1996 TAG: 9603190380
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
LENGTH: Short : 38 lines
Dominion Reserves Inc. announced Monday that it and a partner paid $56 million for Gulf of Mexico natural gas and oil reserves.
Dominion Reserves is a unit of Dominion Energy Inc., itself a subsidiary of Dominion Resources Inc., the Richmond-based parent of Virginia Power.
Founded in 1987, Dominion Energy owns natural gas reserves around the country and in Australia. Monday's purchase boosts its natural gas production by 28 percent.
Dominion Reserves partner in the purchase, Houston-based American Exploration Co., will operate most of the reserves. The reserves currently produce 23 million cubic feet of gas and 2,600 barrels of crude oil a day.
The reserves hold an estimated 45 billion cubic feet of natural gas and 2.4 million barrels of oil. Additional gas and oil may be located within the boundaries of the property purchased.
``This venture . . . moves us toward our business goal of establishing a growing, profitable and balanced portfolio of oil and natural gas reserves,'' said G.E. Lake Jr., Dominion Energy's senior vice president of oil and gas.
``It also gives us a high quality reserve and production base in the gulf, where we have been seeking to build a business,'' Lake said. ``These properties also provide immediate cash flow and earnings with further upside potential through higher prices and additional reserve recovery.''
Dominion Reserves owns 75 percent of the new reserves and American Exploration 25 percent. by CNB