October 29, 2002
HOUSTON - Dominion Exploration & Production, Inc. will assume operation of more than 800 coal-bed methane wells located in Tuscaloosa, Alabama, from its partner, ConocoPhillips (NYSE: COP). The effective date of the transaction is December 31, 2002. Dominion E&P is a wholly owned subsidiary of Dominion (NYSE: D).
ConocoPhillips currently acts as contract operator for the Black Warrior project, a 532-well development in which Dominion E&P has an approximately 98 percent working interest. In addition, ConocoPhillips operates the jointly owned Whitson project where Dominion E&P is the majority owner. ConocoPhillips' working interest in the Whitson project will increase as a result of this transaction.
Duane C. Radtke, president and chief executive officer of Dominion E&P, said: "With this agreement, Dominion E&P accomplishes its objective to operate its high working interest properties in the Black Warrior Basin. Dominion has been pleased with the relationship with ConocoPhillips and looks forward to a continued partnership while growing these assets and pursuing other opportunities in the area."
Within the Black Warrior project, Dominion Resources Black Warrior Trust (NYSE: DOM) also owns an overriding royalty interest in the 532 wells subject to an overriding royalty conveyance effective June 1, 1994.
Dominion has a diversified and integrated energy portfolio consisting of about 24,000-megawatts of generation, 5.7 trillion cubic feet equivalent of natural gas reserves, nearly 7,700 miles of natural gas transmission pipeline and the nation's largest underground natural gas storage system with more than 960 billion cubic feet of storage capacity. Dominion also serves over 3.8 million franchise natural gas and electric customers in five states. In addition, Dominion owns a managing equity interest in Dominion Fiber Ventures, LLC, owner of Dominion Telecom. For more information about Dominion, visit the company's web site at www.dom.com.
# # #