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OIL, GAS BUSINESS OF NERCO SOLD TO WESTERN GAS

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Kennecott Corp., an indirect subsidiary of RTZ Corp. PLC, and its affiliate NERCO Inc. have completed the sale of NERCO's oil and gas business to Western Gas Resources Inc.

The sale includes NERCO's Black Lake (Louisiana) and its offshore operations. The Black Lake field located onshore in Louisiana and the stock of Black Lake Pipeline Co. will be transferred to Western Gas Resources Inc. for an aggregate purchase price of approximately $156 million.The stock of NERCO Oil & Gas Inc., a wholly owned subsidiary of NERCO Inc., which will retail offshore oil and gas properties, will be sold to The Louisiana Land and Exploration Co. for an aggregate purchase price of $353.7 million.

The two sales, which total more than $500 million, are subject to regulatory approval.

Kennecott completed the merger of NERCO Inc. on June 2. Kennecott officials previously announced its plans to dispose of NERCO's oil and gas business because its operations were not compatible with RTZ's and Kennecott's strategic objectives.

Kennecott is the third largest copper producer in the U.S., accounting for roughly 15 percent of the nation's copper supply.