Energy sector growth opportunities for MDU Resources
11/6/2007
Bismarck, ND
MDU Resources Group, Inc. (NYSE:MDU) announced that its natural gas transmission subsidiary has completed a major pipeline expansion project. The project consisted primarily of the addition and modification of compression and adds 41,000 decatherms (dkt) per day of firm transportation capacity to the Grasslands Pipeline system. In total, the Grasslands Pipeline is now capable of transporting approximately 140,000 dkt per day.
“Completed on time and within budget, this expansion project adds to our ability to transport and store gas for our customers,” said Terry D. Hildestad, president and CEO of MDU Resources. “It has been a banner year for our pipeline operations marked by the completion of this long-term project. Other new connections to supply sources in the emerging Bakken Play in western North Dakota and a potential new expansion of our pipeline in eastern North Dakota could translate to even more growth in delivery volumes in the years ahead.”
Additionally, a recent order by the Ninth Circuit Court of Appeals lifted the court’s previously issued injunction prohibiting the Bureau of Land Management (BLM) from approving any coalbed natural gas production projects in the Powder River Basin of Montana and prohibiting MDU Resources subsidiary Fidelity Exploration & Production Company from drilling any Coal Creek project federal wells that had already been approved by the BLM.
The Ninth Circuit ruling to lift the injunction on coalbed natural gas drilling in Montana means the BLM, Fidelity Exploration & Production Company and other operators will be able to go forward within constraints of the injunction issued by Magistrate Judge Anderson in April 2005. “We will now proceed with the steps necessary to prepare to drill approximately 23 previously approved wells in the Coal Creek project,” Hildestad said.
The information in this release includes certain forward-looking statements, including statements by the president and chief executive officer of MDU Resources Group, Inc. within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, actual results may differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the effects of competition, fluctuations in natural gas and oil prices; drilling successes in natural gas and oil operations; the ability to contract for or to secure necessary drilling rig and service contracts and to retain employees to drill for and develop reserves; and ongoing litigation and administrative proceedings in connection with the company’s coalbed natural gas development activities. For a discussion of other important factors that could cause actual results to differ, refer to Item 1A – Risk Factors in MDU Resources’ most recent Form 10-K and Form 10-Q.
MDU Resources Group, Inc., a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, operating in three core lines of business; Energy, Construction Materials and Utility Resources. MDU Resources includes natural gas and oil production, natural gas pipelines and energy services, construction materials and mining, construction services, and electric and natural gas utilities. For more information about MDU Resources, see the company's Web site at www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.
For financial inquiries, contact:
Vernon A. Raile
Executive Vice President, Treasurer and Chief Financial Officer
(701) 530-1003
Phyllis A. Rittenbach
Director of Investor Relations
(701) 530-1057
For media inquiries, contact:
Rick Matteson
Director of Communications and Public Relations
(701) 530-1700
Tim Rasmussen
Operating Company Public Relations Manager
(701) 530-1069