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March 31, 2000 NYSE: STR
Contact: R. Curtis Burnett Office: 801-324-5541
QUESTAR CONTINUES DRILLING SUCCESS AT PINEDALE PLAY
SALT LAKE CITY Questar Corp. (NYSE:STR) announced today that a new exploratory well in its Pinedale, Wyoming, play produced 11.1 million cubic feet (MMcf) of natural gas into a pipeline and 89 barrels of oil during the initial 24hour period.
Two Questar exploration and production subsidiaries Wexpro Co. and Questar Exploration and Production Co. own a combined 92.5% working interest in the well, the Mesa Unit No. 6. The well was directionally drilled to a total measured depth of 13,400 feet in the SWSW of Section 16, T32N, R109W, in Sublette County, Wyo. The well is producing from the Lance Formation with an average flowing tubing pressure of 1,924 pounds per square inch.
The Mesa Unit No. 6 well is the southern offset to the Mesa Unit Well No. 3, which was completed January 30 at a rate of 11.4 MMcf and 113 barrels of oil during the initial 24hour period. Company officials said the drilling results "confirm the high potential gas production and reserves in the tight sands underlying Questar's acreage in the area."
According to the company, Questar's acreage appears to be strategically located on top of the Pinedale Anticline. In the fall of 1999, the company completed a 77squaremile 3D seismic survey covering the Questar acreage. The data is currently being evaluated and "thus far supports the significance of the Questar acreage," the company said.
Questar is planning to drill eight to ten additional wells this summer to confirm the extent of the productive reservoir. A multiyear drilling program is planned, depending on the results of the current drilling program and the 3D seismic data. Other Questaroperated wells on the acreage confirm the existence of gas throughout the Questar acreage.
The Bureau of Land Management is expected to complete an environmental impact statement in June, which is required before Questar can commence additional drilling.
This news release contains some forward-looking statements about the future operations and expectations of Questar Corp. and its subsidiaries. These statements were made in good faith, and the corporation believes they are reasonable representations of the company's expected performance at this time. Actual results may vary from stated expectations due to a variety of factors.
Questar is a $2.2 billion integrated energy resources and services company headquartered in Salt Lake City. Through subsidiaries, it engages in energy development and production; gas gathering and processing; wholesale gas, electricity and liquids trading; retail energy services; interstate gas transmission and storage; retail gas distribution; and information systems and technologies.
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