NEWSFLASH

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ISABELA GAS WELL YIELDS FIRST BILLION CUBIC FEET

Echague, Isabela, April 27, 1998 - The San Antonio Gas Power Plant owned and operated by the PNOC-Exploration Corporation has yielded its first billion cubic feet of clean natural gas.

PNOC-EC president Rufino Bomansang said the production is "considered a first in the local energy industry as it marks the first billion standard natural gas production used directly and on- site for power generation."

With this production, the power plant is expected to provide electricity to more towns in Isabela. At present the facility is generating 53 million kilowatt hours of electricity, or roughly 3 megawatts, servicing some 10,000 households int he towns of Echague, Jones, San Agustin and part of Santiago City.

The plant began commercial production in March 1994, partially financed by the Canada International Development Agency. Is it the first power plant fuelled by natural gas directly from a well, which was drilled by the PNOC in 1980.

Natural gas for power generation is being promoted in many countries because of environmental and economic advantages over conventional oil thermal plants running on fossil fuel.

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