Equitable Resources Energy Company Announces Additional Success In South Marsh Island Block 39 in the Gulf of Mexico

HOUSTON, Dec. 19 /PRNewswire/ -- Equitable Resources Energy Company (EREC), a subsidiary of Equitable Resources, Inc. (ERI) (NYSE: EQT), today announced that it has further confirmed an oil and gas discovery in the Gulf of Mexico in the South Marsh Island Block 39 with drilling and testing of the No. 2 well.

The No. 2 well is in 97 feet of water off the coast of Louisiana and offsets the No. 1 well discovery reported earlier this year.

EREC is the well operator and holds an equal working interest with Chieftain International (U.S.), Inc. (Amex: CID).

The South Marsh Island 39 No. 2 well was drilled to a total vertical depth of 13,200 feet, encountering 245 feet of net oil and gas pay. The well was tested for a short duration in the oil column at a rate of 850 barrels of oil per day plus associated gas.

Production from wells No. 1 and 2 has been suspended pending further determination of reserve size so that production facilities can be designed and fabricated. The working interest partners have started the drilling of a third well to a target depth of 14,455 feet.

This is the seventh EREC discovery this year in the Gulf of Mexico. The company has previously announced successful drilling on West Cameron Block 540 No. 2 and No. 3 wells, Vermilion Block 215 No. B-1O, South Marsh Island Block 152 No. 1, and High Island Block A-270 No. B-13.

"Our discoveries and acquisitions this year will more than double our Gulf of Mexico production in 1998. This is indicative of the commitment ERI has made to growing its Gulf Coast exploration and production business," said R. Gerald Bennett, president of ERI Supply & Logistics.

During 1998, EREC will invest more than $56 million for exploration and production in the Gulf Coast. EREC's total capital budget for 1998 is $82 million.

EREC is the exploration and production unit of ERI's Supply & Logistics business segment. ERI Supply & Logistics explores for, produces and delivers natural gas and oil, with extensive operations in the Appalachian Basin and Gulf of Mexico. It is also engaged in the transportation and storage of natural gas, production of natural gas liquids and the bulk trading of natural gas and electricity.

Equitable Resources, Inc. (NYSE: EQT) is a fully integrated energy exploration, distribution and marketing company. It offers customized energy (natural gas, natural gas liquids, crude oil and electricity) solutions to wholesale and retail customers with innovative products and services from its three primary business segments -- ERI Supply & Logistics, ERI Utilities and ERI Services. ERI has operations throughout the United States.

Equitable Resources' recent news releases are available free of charge by fax through Company News on Call at 1-800-758-5804, ext. 289250, or on the Internet at http://www.eri2000.com

SOURCE Equitable Resources, Inc.

     -0-                             12/19/97 

/CONTACT: Media, Diane Wuycheck, 412-553-5911, or Analysts, Robert Atkinson, 412-553-5768, both of Equitable Resources/

/Company News On-Call: http://www.prnewswire.com or fax, 800-758-5804, ext. 289250/

/Web site: http://www.eri2000.com/

(EQT CID)

CO: Equitable Resources, Inc.; Chieftain International (U.S.), Inc.;

Equitable Resources Energy Company ST: Pennsylvania, Texas IN: OIL SU: DSC

JS-MZ -- PHF043 -- 9652 12/19/97 16:46 EST http://www.prnewswire.com