MESA MAPS STRATEGY TO OFFSET LOW GAS PRICES

June 17, 1991

Mesa Limited Partnership, Dallas, one of the biggest independent gas producers in the U.S., is poised for a campaign to bolster cash flow despite weak wellhead prices. The campaign will follow financial transactions that retired all of Mesa's bank debt, which totaled $916 million at yearend 1990. It now has more than $300 million for working capital and capital spending. Salomon Bros. Inc., New York, represented Mesa in the debt restructuring and sale of $616.6 million in notes. Mesa does

Mesa Limited Partnership, Dallas, one of the biggest independent gas producers in the U.S., is poised for a campaign to bolster cash flow despite weak wellhead prices.

The campaign will follow financial transactions that retired all of Mesa's bank debt, which totaled $916 million at yearend 1990. It now has more than $300 million for working capital and capital spending. Salomon Bros. Inc., New York, represented Mesa in the debt restructuring and sale of $616.6 million in notes.

Mesa does not believe a recovery in gas prices is likely soon. So it will:

Double current natural gas liquids production to about 6 million bbl in 1993 by building a gas processing plant at Satanta, Kan., and expanding its Fain plant in the Texas Panhandle.
Sell helium from gas production in Hugoton and West Panhandle fields, where its reserves include about 6 bcf of helium with productive capacity of 400 MMcf/year.
Help develop a compressed natural gas vehicle market in the U.S. and expand into cogeneration or CNG service stations.
Assess joint ventures and asset purchases in the Gulf of Mexico.