Oneok bought an additional 55% of the Sycamore gathering systemin Carter County, OK, from Continental Natural Gas of Tulsa, OK,giving it 97% of the system. Oneok is operator of the system and amajor producer in the area. “This is a continuation of our strategyof concentrating ownership in areas where we have a growing reservebase to maximize value for our shareholders,” said David Kyle,Oneok COO.

Continental acquired its share of the system during the firstquarter of 1998. Continental CEO Gary Adams said the system isnon-strategic to the company.

In a separate deal, Continental acquired Oneok Product Company’sminority ownership in the Laverne gas processing plant in HarperCounty, OK. Continental is the plant’s operator and now will haveabout 66% of the plant. Both transactions were effective yesterday.Terms were not disclosed.

Continental also signed a five-year purchase and sale agreementfor about 10,000 MMBtu/d of gas owned by Oneok Resources. Oneokalso will sell gas from additional wells in the Mocane-Laverneareas. The agreement allows Continental to process the gas at itsown facilities and, in addition to all associated processingrevenues, will increase the volume of gas Continental has availableto market.

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