Clinton Gas Systems reaches agreement with Columbia Gas Transmission Corp

Business Wire, June 21, 1995

COLUMBUS, Ohio--(BUSINESS WIRE)--June 21, 1995--At its annual shareholders meeting yesterday, Jerry D. Jordan, chairman of Clinton Gas Systems Inc. (NASDAQ:CGAS)(``CGAS''), announced that CGAS had reached agreement with Columbia Gas Transmission Corp. to settle its bankruptcy claim against Columbia.

Jordan reported that CGAS should realize approximately $5 million from the claim, with additional funds to be allocated among certain drilling programs sponsored by the company. Jordan said that the settlement proceeds will initially be used to reduce debt, to allow CGAS more flexibility in financing its oil and gas exploration efforts and gas marketing business.

CGAS also announced that it has recently drilled a new discovery well in Licking County, Ohio, which is producing at the rate of 300 barrels of oil per day during its first weeks of operation. Jordan said that CGAS, through its operating subsidiary, The Clinton Oil Co., (``Clinton'') has a large lease block around the discovery well. The new well produces from the Rose Run formation. Jordan said he expected that Clinton would drill approximately 50 wells and participate in another 30 wells drilled by others during 1995.

Clinton Gas Systems Inc., is an Ohio corporation which, through its subsidiaries, is engaged in the business of natural gas and oil exploration, production and marketing and industrial energy management. With principal offices located at 4770 Indianola Ave., Columbus, Ohio, 43214, its shares are traded on the NASDAQ Stock Market under the symbol ``CGAS.''

CONTACT: Clinton Gas Systems Inc., Columbus

Jerry D. Jordan, 614/888-9588