Virginia Gas Company
Proposed Ticker: VGCO 120 South Court Street
Exchange: NASDAQ-National Market Abingdon, Virginia 24210
Industry: Natural Resources (540) 676-2380

All share information is proposed
Type of Shares:Common Shares Filing Date:8/5/96
U.S. Shares Filed:1,533,000 Filing Price:$6.00
Non-U.S. Shares Filed:0 Offering Amount: $9,198,000
Primary Shares:1,533,000 Expenses:$250,000
Secondary Shares:0 Shs Out After:3,150,740

ManagerTierPhone
Anderson & Strudwick, IncorporatedLead Manager (804) 643-2400

Auditor: Arthur Andersen
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$4.44$2.63$2.35Assets:$29.47
Net Income:$0.47$0.21$0.27Liabilities:$19.56
EPS:Equity:$9.91

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is an integrated natural gas company engaged in natural gas storage, gathering and distribution services; natural gas exploration, production and well operation; pipeline operation; and propane distribution. The company conducts its operations primarily in the southwestern countries of the Commonwealth of Virginia. It is the company's intention to take advantage of deregulation of the domestic natural gas industry by providing services previously supplied by the interstate pipeline companies. The company's strategy is 1) to increase storage and related pipeline capacity to meet increasing demand for natural gas services in its market area, 2) to add value to its natural gas production by distributing natural gas directly to residential, commercial and industrial users through its natural gas utility, 3) to maximize the volume of natural gas it gathers and markets, 5) to increase its natural gas reserves through selective acquisitions.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes including but not limited to completion of the Saltville Facility; expanding the Early Grove Facility; the development of natural gas and propane distribution systems in Russell and Buchanan Counties, Virginia; and development of the P-25 pipeline.

Last updated: 10/28/96

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