Plains Petroleum Company and Subsidiaries - Page 42




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          petitioner and the other working interest owners revealed that              
          the incumbent South Atlanta operator, Strago, had an undisclosed            
          interest in the "sweetening" plant that removed the sulfur from             
          the gas.  Petitioner looked for alternative sweetening plants and           
          unsuccessfully tried to take over as the operator.  Petitioner              
          ultimately sold its interests in the South Atlanta field during             
          1992.                                                                       
               Through the years petitioner divested other properties as              
          well.  By the end of 1995, petitioner sold or abandoned many of             
          the wells acquired in the Tri-Power acquisition.                            
               C.   Continued Acquisition Efforts                                     
               During the years subsequent to the Tri-Power acquisition,              
          petitioner continued its acquisition program.  During the period            
          from 1988 to 1994, petitioner added and replaced reserves through           
          the acquisition of over 17 oil and gas companies.28                         

          28   Petitioner's acquisitions included the following:                      
        Year                                          Reserves      Acquisition       
          Acquired       Name            Location       Acquired    Price             
          1988      Alpar Oil       Texas Panhandle     Oil & Gas $6,000,000          
                    Midlands Resources    West Texas    Oil & Gas 15,700,000          
                    Miscellaneous   Meeteetse/Wyoming Gas         694,118             
                    Wedge Oil & Gas West Texas          Oil & Gas 2,500,000           
                                                                                     





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