Subsidiary

Canadian Occidental Petroleum subsidiary CXY Energy of Dallasagreed to acquire 50% of Fina Oil and Chemical’s interests in 64lease blocks in the Gulf of Mexico.

LG&E Energy Marketing (LEM), a subsidiary of LG&EEnergy, has introduced risk management products designed to manageweather-related risk.

Chesapeake Energy agreed to buy MC Panhandle Corp., a whollyowned subsidiary of Occidental Petroleum for $105 million cash forestimated proved reserves of about 100 Bcf in the West PanhandleField in Carson, Gray, Hutchinson and Moore counties of the TexasPanhandle. The reserves are 100% gas, have an estimatedreserve-to-production index of eight years, and are 85% proveddeveloped producing. During 1997, the wells produced about 13 Bcf(36 MMcf/d) net to Occidental’s interest from 256 wells, of whichall but two were Oxy operated wells. Chesapeake will assumeoperations of the acquired wells and will own an average workinginterest and net revenue interest of 99.5% and 85.2%, respectively.The transaction is effective Jan. 1, with closing scheduled May 29.With this purchase and pro forma for Chesapeake’s pending Hugotonand DLB transactions, Chesapeake’s estimated proved reserves willincrease to about 1,050 Bcfe. The Hugoton Energy Panhandleproperties to be acquired by Chesapeake were originally acquiredfrom Oxy in 1992. Chesapeake CEO Aubrey K. McClendon, said, “asresult, we expect to be able to operate these reunited propertiesvery efficiently out of Hugoton’s existing Pampa, TX, field office.For example, pro forma for these acquisitions, we expect our directproduction costs in the Texas Panhandle, excluding productiontaxes, to average approximately $0.30 per Mcf. These arehigh-margin, low-maintenance wells that we believe will provideaccretive results to our cash flow in 1998 and beyond.”

MCNIC Pipeline & Processing, a subsidiary of MCN EnergyGroup, and American Central Gas Companies, have formed apartnership to own and operate a gas gathering system in theCarthage field of East Texas. MCNIC Pipeline & Processing has a40% interest, and American Central holds 60%.