Columbia Natural Resources (CNR) has expanded operations toeastern Canada with the purchase of an interest in gas and oilwells and undeveloped property in Ontario. The US$3.6 millionacquisition from Paragon Petroleum of Calgary includes a 50%interest in 24 wells and 100% of 5,000 acres of undevelopedproperty. The owner of the other 50% of the wells is CanEnercoLtd., which will market gas production. “Our move into Canada isthe second expansion of CNR’s base of operation in less than ayear,” said W. Henry Harmon, CEO. CNR’s $101 million purchase ofAlamco Inc. last August increased reserves by 25% and expandedcompany operations into southern Kentucky and northern Tennessee.

A CNR spokesman said figures on production from the well andcompany development plans were not available. The Canadian propertyacquired is near the proposed Millennium Pipeline, a Northeast gaspipeline project being developed by Columbia Gulf Transmission andthree partners.

“We are stretching CNR’s exploration and production operationsbeyond our traditional area to explore new opportunities beyond themature Appalachian Basin,” Harmon said.

In other Columbia news, Columbia Energy, another member of theColumbia Energy Group, signed a long-term contract to provide gasand energy management services to AK Steel at its Middletown, OH,and Ashland, KY, locations. AK Steel, which is headquartered inMiddletown, is one of the largest industrial companies east of theMississippi. A Columbia spokesman would not disclose terms andvolume of the contract but did say the contract is not indexed.Among energy management services to be provided are facilitymanagement, contract negotiation, market analysis, and invoicereview and verification.

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