Mitchell Energy andDevelopment Corp said it plans to hold its capital spending in
fiscal 1988, ending January 31, to 96 mln dlrs, down from the
123 mln dlrs spent in 1987 and 213 mln dlrs in 1986.
    The company also said its natural gas revenues so far this
year have been reduced by lower contract customer purchases due
to mild weather and soft economic conditions.
    "But the contracts call for the lower 'takes' to be made up
during the course of the year," Mitchell Energy said. Meanwhile
it will sell additional quantities of gas on the spot market.
    Mitchell Energy said the additional spot sales will tend to
lower the average price realized for gas in the early part of
fiscal 1988.
    However, it said the average for the full year is not
expected to be significantly lower than the 2.99 dlrs per
thousand cubic feet averaged in fiscal 1987.                   
   
 Reuter
