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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) JANUARY 10, 1996
MCN CORPORATION
(Exact name of registrant as specified in its charter)
MICHIGAN 1-10070 38-2820658
State of Incorporation (Commission File (I.R.S. Employer
Number) Identification No.)
500 GRISWOLD STREET, DETROIT, MICHIGAN 48226
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(313) 256-5500
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ITEM 5. OTHER EVENTS
MCN SUBSIDIARIES ACQUIRE GAS AND OIL PROPERTIES
MCN Corporation ("MCN"), through subsidiaries of MCN Investment
Corporation ("MCN Investment"), recently acquired certain gas producing
and pipeline properties in Virginia from companies of CONSOL Coal Group
(CONSOL). CONSOL is one of the United States' largest coal producers,
mining 72.2 million tons in 1994.
The acquisition includes a 100% interest in 130 producing wells and
rights to undertake additional development drilling on approximately
100,000 acres of Virginia coal bed methane properties. The
transaction also included approximately 80 miles of gathering lines
and a 50% interest in a 40 mile major gathering line connecting these
and other gas reserves to a major interstate pipeline. These coal
bed methane reserves are part of coal production properties owned by
CONSOL. A portion of current production from wells drilled prior to
January 1, 1993 qualify for federal income tax credits of about $1
an Mcf.
In separate transactions with other parties, MCN, through subsidiaries
of MCN Investment, also acquired certain gas and oil properties in Texas,
Oklahoma, Kansas, Colorado and North Dakota.
The total cost of all the acquisitions is $120 million. MCN's interest
in all the properties include proved reserves of 235 Bcf of natural gas,
1.3 million barrels of proved oil reserves, and a significant amount of
probable and potential reserves. Since 1992 when MCN began investing in
the exploration and production business, its proved gas reserves has
grown significantly and exceeds 800 Bcf as of year-end 1995.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MCN CORPORATION
By /s/ Sebastian Coppola
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Sebastian Coppola
Vice President and Treasurer
Date: January 10, 1996
