Coastal Field Services Co. made a small increase in itsinterests in Gulf of Mexico Mobile Bayarea and gained the companyoption to increase its share significantly more.

A purchase – through affiliate Coastal Dauphin Island Co., LLC -was made from entities controlled by Titan Exploration Inc., whosesubsidiaries earlier had sold Coastal all of its Gulf of Mexicoexploration and production assets.

Coastal’s exploration and production subsidiary, Coastal Oil& Gas Corp. (COG), is a significant producer in the easternGulf’s Main Pass and Viosca Knoll producing regions. Main Passproduction is 100 MMcf/d and is transported on the Dauphin IslandGathering System (Coastal Dauphin ownership 14.6%) onshore toCoden, AL. COG also supplies a significant portion of the currentvolume throughput in the Mobile Bay Processing Plant (CoastalDauphin ownership 14.4%). Extracted liquids are transported in thepartially-owned Tri-States Pipeline.

The transaction provides CFS an approximate 1% additionalinterest in the partnerships that own the Mobile Bay ProcessingPlant and Cogeneration Facility near Coden, the offshore DauphinIsland Gathering System, and the onshore Tri-States gas liquidspipeline. It also provides CFS the right to acquire, throughCoastal Dauphin, an additional 28% in the processing plant andcogeneration entity as well as an additional 5% in the gas liquidspipeline entity. Coastal Dauphin previously had owned about 13.6%of the partnerships.

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