Western Gas Resources, Inc. announced yesterday that itswholly-owned subsidiary, Western Gas Resources-Oklahoma, Inc.(WGRO), purchased Panhandle Gathering Co.’s (PGC) 50% interest inWestana Gathering Co. for an undisclosed sum. The transaction hasan effective date of Jan. 1, 2000 and gives WGRO full ownership ofthe company.

“This purchase demonstrates our previously stated intent toselectively invest in high return growth projects within our coreareas of operation which provides immediate cashflow and maximizesthe future profitability of our gathering and processingactivities,” Lanny Outlaw, CEO Western Gas Resources, said.

Westana owns and operates an 800-mile gas gathering system innorthwestern Oklahoma and southwestern Kansas and a 45 MMcf/d gasprocessing facility. During 1999, Westana averaged 67 MMcf/dthroughput, 93 million gallons per day of NGL production andconnected 92 new wells.

“Our ownership of 100% of Westana further solidifies ourposition in northwestern Oklahoma and provides consolidationopportunities with our Chaney Dell plant and gathering systemoperations,” Outlaw added.

WGRO was the managing partner and 50% owner of Westana, ageneral partnership formed in August 1993 with PGC, a wholly-ownedsubsidiary of Duke Energy Field Services, Inc.

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