Western Gas Resources’ production subsidiary Lance Oil &amp Gasis offering for sale a working interest in the Jonah Field, a largebasin-centered gas accumulation in the northwest portion of theGreen River Basin in southwest Wyoming. Western intends to retainall of its gathering and processing rights in the area following asale.

The Jonah Field is currently being developed on 80-acre spacing,with gas production approaching 200 MMcf/d from 85 wells. Lanceowns working interests in 19 producing wells on 2,000 gross acres,with current gross and net gas production of about 45 MMcf/d and 4MMcf/d, respectively. Gas deliverability is expected to increase ascompletion operations are finalized in the 19 producing wells andthree additional wells begin producing later this month. In-filldrilling on 40-acre spacing, which is under evaluation by the JonahField producers, could provide up to 25 additional drillinglocations on the Lance acreage.

“The Jonah field is a very prolific field. There’s been a lot ofsuccess there,” said Ron Wirth, director of investor relations forWestern Gas Resources. “There’s no question. I’ve heard numbers of600 Bcf to a trillion cubic feet of gas potential in Jonah.”

Western is an independent gas gatherer and processor and anenergy marketer providing services from the wellhead to thedelivery point. The company owns and operates gathering,processing, treating and storage facilities in gas-producing basinsin the Rocky Mountain, Midcontinent, Gulf Coast and Southwestregions of the United States.

Joe Fisher, Houston

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