El Paso Corp said it closed on oil and gas property sales totaling $525 million in the first quarter of 2002, and is on track to reach $2.25 billion in assets sales by this summer as part of its balance sheet strengthening program.

The first quarter sales cover 527 Bcf of natural gas proved reserves located in East Texas and South Texas. On a natural gas equivalent basis, the sales reflect consideration of $1.00 Mcfe, but when the future development costs of proved undeveloped reserves are considered, the purchase price is $1.40 per Mcfe.

“These transactions are another important step in implementing the balance sheet enhancement plan that we announced in December of last year,” said CEO William A. Wise. “We expect to close the $750 million sale of midstream assets to El Paso Energy Partners in the first week of April, and we are in advanced discussions for the sale of another $500 million of oil and gas properties. Given the excellent progress to date, we are on track to complete the vast majority of our $2.25 billion of assets sales by mid year.”

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