Despite record production Enron Oil & Gas (EOG) reportedthird quarter net income of $5.9 million, down from $31.2 millionin the third quarter of 1997.

“For the first time in our history, EOG produced over 1 billioncubic feet per day in average wellhead natural gas production,”said Mark G. Papa, EOG president. Adding in oil and gas liquids,boosted total equivalent volumes to more than 1.2 Bcf/d. The totalswere an increase over the 897 MMcf/d of natural gas and 25 MBD ofcrude, condensate and liquids in the third quarter of 1997.

The additional volumes, however, were not enough to make up forthe lower prices for oil and natural gas. In North America wherethe largest amount of Enron’s production is located, wellheadprices averaged $1.75 in 3Q 1998 compared to $1.91/Mcf in 3Q 1997,while crude and condensate price realizations were $12.39 perbarrel compared to $18.88 a year ago. Including production in Indiaand Trinidad, EOG collected an average of $1.67/Mcf in 3Q 1998,compared to $1.84/Mcf for the same period last year.

Net revenues also were impacted by higher operating costs. Netoperating revenue for the quarter was $191.3 this year compared to$193.1 in 3Q 1997, while operating expenses went from $144.4 in1997 to $172.1 in the quarter just past.

Total North American production averaged 798 MMcf/d for thequarter this year compared to 748 MMcf/d a year ago.

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