Looking to spread its presence in the Gulf of Mexico, OceanEnergy Inc. (OEI) entered into a drilling agreement with DukeEnergy Hydrocarbons, LLC to jointly develop 13 OEI drillingprospects in the outer continental shelf. The Duke subsidiaryagreed to participate with up to 50% non-operating working interestin the program. The two companies anticipate drilling costs willexceed $40 million for the rest of 1999.

A joint venture of Venus Exploration Inc. and EXCO ResourcesInc. has completed a $28.5 million acquisition of Louisiana-basedoil and gas properties from Apache Corp. Venus and EXCO each willown 50% of the venture and EXCO will be the operator. Theproperties are in the Vernon Field of Jackson Parish, LA, whichcontains 18 gas wells, producing an aggregate of about 6.5 MMcf/dnet to the interest being acquired by the venture.

The Energy Information Administration released its Annual EnergyReview last week chronicling 50 years of changes in the U.S. energyindustry. The report is available athttps://www.eia.doe.gov/emeu/aer/ on EIA’s web site. For printedcopes call EIA’s National Energy Information Center, (202)586-8800.

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