Indiana Energy, Inc. said yesterday that a special meeting ofcommon shareholders would be held on December 17 at its corporateheadquarters in Indianapolis, IN, to consider the previously announcedmerger with SIGCORP Inc. The merger would create a new $1.9 billionholding company called Vectren (see Daily GPI, June 15). Through its utility subsidiaries,Vectren will offer gas and electricity to more than 650,000 customersin adjoining service areas that cover nearly two-thirds ofIndiana. Vectren’s non-regulated subsidiaries will offerenergy-related products and services, including: energy marketing;performance contracting and coal mining; fiber-optic basedtelecommunications services; locating, trenching and meter readingservices; and materials management to customers throughout thesurrounding region. Under the merger agreement, Indiana Energyshareholders will receive one share of Vectren’s common stock for eachshare of Indiana Energy stock. SIGCORP shareholders will receive 1.333shares of Vectren’s common stock for each share of SIGCORP stock.

Shell Exploration & Production said Monday during a shutdownof a well it detected a pressure buildup in the production casingat its Alex gas development, located on Brazos Block A-19 in theWestern Gulf of Mexico, about 75 miles south, southwest ofGalveston, TX. The well remained shut-in and secure yesterday whileShell investigated the situation. Shell has received permissionfrom the Minerals Management Service to temporarily resume flowfrom the well, which is expected to bring the pressure down tonormal. Pumping equipment has been deployed to the site and shouldarrive this weekend. Plans are to shut down the well and pumpfluids to further stabilize the pressure between the tubing stringand the outer casings. Diagnostic work to determine the cause ofthe pressure buildup and to develop plans to permanently resolvethe situation continues. Prior to shut-in, Alex was producing about84 MMcf/d since its startup on Oct. 16.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.