Coastal Oil & Gas Corp.-on behalf of Coastal Oil & GasUSA LP – acquired properties in the Piceance Basin of Colorado andthe Uinta Basin of Utah from Mitchell Energy & DevelopmentCorp.

The properties include 24,000 net leasehold acres (developed andundeveloped) with 36 wells and associated pipelines, gatheringsystems and production facilities. They are in the Hell’s HoleField in northwestern Colorado and Park Mountain Field innortheastern Utah. Production is about 6 MMcf/d. A Coastalspokesman declined to give information about reserves or pricepaid.

“These properties add to our growing asset base in Piceance andUinta Basins and complement the acquisitions previously made in thearea,” said Coastal CEO David A. Arledge.

In June, Coastal Corp. subsidiary Coastal Field Services Co.announced the purchase of gathering systems and processing plantsin northeastern Utah. Last November, Coastal Oil & Gasannounced the purchase of upstream assets in northeastern Utah andwestern Colorado.

“With the sale of these properties, we have effectively exitedthe mid-continent region,” said Mitchell CEO George P. Mitchell.”While sales proceeds initially will be used to pay down debt, weultimately expect to re-deploy these funds in our core areas wherewe have an inventory of nearly 1,000 development wells and we canachieve higher returns on shareholder equity.”

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