Midcoast Energy Resources said its wholly owned Louisianaintrastate pipeline subsidiary, Creole Gas Pipeline, has reached along-term agreement with Chevron Chemical Co. to provide gas supplyto Chevron’s Oak Point plant in Belle Chasse, LA. The five-yearpact calls for Creole to provide Chevron with 9,500 MMBtu/d of gas,or about 90% of the total requirements of the Oak Point plant.Creole will construct a new seven-mile pipeline to provide theservice, which will start in September. Creole provides gastransportation services to major industrial customers in the NewOrleans area.

Cotton Valley Resources said it is merging with Crown PartnersL.L.C. Minerals Division through an exchange of common shares andwarrants whereby Cotton Valley shareholders will retain 27% andCrown shareholders 73% of the combined company. Cotton Valley’sPresident Jim Hogue said Crown has an interest in 360 producing oiland gas wells and 600 undeveloped locations in Arkansas,California, Louisiana, Montana, Oklahoma, Texas and Wyoming. Theproducing properties cover in excess of 175,000 gross acres.Crown’s interests currently contain proved producing andbehind-pipe reserves of 9.4 Bcf of gas and 200,000 barrels of oilwith a 10% present value of $10 million. Current management ofCotton Valley has agreed to resign upon initial funding at whichtime directors and officers appointed by Crown will take over dayto day operations and management.

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