Louis Dreyfus Natural Gas

Louis Dreyfus Natural Gas is one of the largest natural gas companies in the United States. With proved reserves of 1.3 Tcfe(1) (as of December 31, 1998) and average daily production of 343 MMcfe(2)(average daily production for the second quarter of 1999) the company remains focused on the exploration, development, acquisition and marketing of natural gas and crude oil. The Companyıs success is directly attributable to its adherence to four key points of business, of which, building a large domestic natural gas reserve base (89% of its proved reserves are natural gas) is but the first. It also achieves better drilling success rates, lower drilling and operating costs, and higher product price realizations by focusing its operations in three core regions: Permian, Gulf Coast/Offshore, and the Mid-Continent region including sites in Texas, Oklahoma , New Mexico, Louisiana, Kansas, and Arkansas. Louis Dreyfus Natural Gas is committed to growing its production and reserves through balanced drilling programs and strategic acquisitions. By strategically focusing operations within three highly concentrated core regions, Louis Dreyfus Natural Gas is able to achieve an efficiency of scale that creates one of the highest cash margins in the industry. Within these core regions, the Company maintains an interest in over 3.6 million acres of leasehold and 9,200 producing wells. Over the five-year period ending December 31, 1998, LDNG has drilled 1,439 wells and has achieved an overall success rate of 93%. Additionally, our geology and engineering teams have identified over 1,575 future drilling locations.

The Company wraps it all up by adding significant value (approximately $120 million in realized gains) through the principles of commodity price risk management. The success of LDNG is directly attributed to its long-term business strategy and knowledge of the industry. In the words of one LDNG executive, "The exploration and production industry is cyclical. We must run our business in such a way that we can be successful regardless of the cycle." - Kevin White.

Corporate Headquarters: 14000 Quail Springs Parkway, Suite 600, Oklahoma City, OK 73134, Telephone: 405 749-1300, Fax: 405-749-1300