Continental Natural Gas, Inc.
Ticker:CNGL 1412 South Boston, Suite 500
Exchange:NASDAQ-National Market Tulsa, OK 74119
Industry:Utilities (SIC Code 4923) (918) 582-4700

Offering Information
Type of Shares:Common Shares Filing Date:4/24/97
U.S. Shares:2,100,000 Offer Date:8/1/97
Non-U.S. Shares:0 Filing Range:$12.00 - $14.00
Primary Shares:1,800,000 Offer Price:$11.25
Secondary Shares:300,000 Gross Spread:
Offering Amount: $27,300,000 Selling:
Expenses:$700,000 Reallowance:
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
Oppenheimer & Company, Inc.Lead Manager (212) 667-7400
Southwest Securities, Inc.Co-manager (214) 658-9495

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Hall, Estill, Hardwick, Gable, Golden & Nelson, PC
Bank's Law Firm: Albright & Rusher
Auditor: Coopers & Lybrand
Registrar/Transfer Agent: Boston Equiserve Limited Partnership

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 12/31/96
Revenue:$246.66Assets:$145.93
Net Income:$7.19Curr Assets:
EPS:Liabilities:$123.78
Prior EPS:Curr Liabilities:
Cash Flow/Oper:$23.54Equity:$22.15
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is an independent mid-stream energy company engaged in the purchasing, gathering, treating, processing and marketing of natural gas and natural gas liquids. The company owns and operates approximately 1,100 miles of natural gas gathering pipelines located in the Texas and Oklahoma panhandle region with a total throughput capacity of 383 MMcf/d and two interconnected natural gas processing plants with a total NGL production capacity of 490 Mgal/d. The company provides essential services to natural gas producers by (I) connecting producers' wells to the company's gathering systems, (ii) treating the producers' natural gas to ensure that it meets pipeline specifications, (iii) transporting the natural gas from the wellhead to the company's processing plants where NGLs are extracted from the natural gas stream and (iv) providing access for the natural gas and NGLs to various markets in the Midwestern, Mid-Continent, Rocky Mountain and southern Texas regions of the United States. The company markets the natural gas it gathers or processes, as well as third-party natural gas it neither gathers nor processes from over 60 producers via 15 interstate and intrastate pipelines, to serve utilities, end-users, other marketers and pipeline affiliates.

Use of Proceeds
The proceeds from the proposed offering will be used to repay outstanding bank borrowings and other general corporate purposes.

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