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Enogex Completes Transok Purchase

Enogex Completes Transok Purchase

Enogex Inc. completed its acquisition of Transok LLC, a gatherer, processor and transporter of natural gas in Oklahoma and Texas. Enogex, a subsidiary of OGE Energy Corp., announced plans May 17 to buy Transok from Houston-based Tejas Gas LLC, an affiliate of Shell Oil Co. for $701 million (See Daily GPI May 18, 1999).

"We moved quickly through regulatory review, arranged the necessary financing and made significant progress toward integration without wavering from our initial time frame," said Steven E. Moore, OGE Energy CEO.

Integration of the Transok system with the Enogex network of pipelines will bring the total to about 10,000 miles of pipe with the capacity to transport more than 3 Bcf/d to a number of end-users and pipelines. Combined gas storage capacity will be nearly 23 Bcf. Together, the companies have interests in 15 gas processing plants.

"We are very excited about the possibilities this acquisition creates for OGE and Enogex," said Roger Farrell, Enogex CEO. "It will provide our producers and transportation customers with greater options and position us to compete favorably in a deregulated marketplace. Equally important, we expect this acquisition to deliver positive earnings during its first full year of operation.

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