Enron Corp. made an SC13D filing with the Securities andExchange Commission on Tuesday to inform the commission it hasreceived an unsolicited offer for its 53.5% share of Enron Oil andGas, one of the largest independent gas producers in the U.S.According to the solicitation, the unnamed third party wouldacquire Enron’s shares in EOG and make an offer for all theoutstanding shares. The third party also would require that Enrondispose of certain other assets.

While trying not to minimize the offer, an Enron spokesman didsay it was among many such offers the company receives for itsinterests in assets. Most offers go unreported. But because Enronowns a majority share in EOG, it had to report the offer.

EOG has a market value of $2.52 billion. EOG shares rose $2.63on the news late Tuesday to close the day at $15.50 a share.Yesterday shares inched up another 6% to close at $16.38.

Enron formed Enron Oil & Gas in 1987 from its existingInterNorth and Houston Natural Gas units. It maintained fullownership until 1989, when it spun off a portion to the public toraise $200 million. EOG explores for and produces oil and gas inthe U.S., Canada, Trinidad and India. About 69% of its reserves arein North America while the rest are overseas. In the third quarter,Enron Oil & Gas produced 1.02 Bcf/d of gas and 31,600 b/d ofoil. About 85% of its reserves are natural gas while 15% are oil.The company reported third quarter 1998 net income of $5.9 million,or $.04 per share, compared to net income of $31.2 million, or $.20per share, for the comparable period a year prior. The decrease inearnings was primarily attributable to lower prices for bothnatural gas and crude oil.

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