News Release
Aug. 18, 1997


HOUSTON, Aug. 18, 1997 -- PanEnergy Exploration and Production (Peru) Ltd., an affiliate of Duke Energy Corporation (NYSE: DUK), Buenaventura Ingenieros S.A. and Mosbacher Peru L.L.C. have signed a license agreement with Perupetro S.A. giving the companies the rights to explore for natural gas and oil in Block 85 of the Ucayali Basin of Peru.

Block 85 comprises approximately 390,000 acres in the western area of the Ucayali Basin near the town of San Alejandro. With the signing of the license agreement, Duke Energy and its partners will begin preparation for drilling an initial exploration well.

PanEnergy Exploration and Production (Peru) Ltd. will serve as operator under the license agreement.

"Duke Energy, Buenaventura and Mosbacher bring a comprehensive set of skills to the project," said Bruce A. Williamson, president, Duke Energy International. "Duke Energy offers extensive capabilities across the exploration, production and marketing spectrum. Buenaventura is one of Peru’s largest private sector companies and well respected for its mining expertise. Mosbacher brings a solid track record in hydrocarbon exploration. We have an experienced team that brings extensive resources to the success of this venture."

"We hope that we will have commercial discovery of hydrocarbons, which will significantly reduce Peru’s dependence on imported hydrocarbons," said Alberto Benavides, chairman of Buenaventura. "Duke and Mosbacher share Buenaventura’s strong desire to enhance the growth and development of Peru’s energy industry."

Robert Mosbacher, chairman of the board of Mosbacher, added: "We are hopeful that this project will play a major role in Peru’s development and significantly enhance Peru’s energy resources."

Duke Energy International, based in Houston, develops, owns and operates upstream, midstream and downstream energy projects. In Peru, the company is an owner of the first integrated natural gas and electric power project in Peru near the town of Aguaytia. Duke Energy International also acts as technical advisor to the project on natural gas issues. The project is scheduled to commence operation in 1998. Duke Energy International is an affiliate of Duke Energy Corporation, a global energy company based in Charlotte, N.C., with $22 billion in assets.

Buenaventura Ingenieros S.A. is a subsidiary of Compania de Minas Buenaventura S.A. (NYSE: BVM), which is a gold and silver producer in Peru.

Mosbacher Peru L.L.C. is an affiliate of Mosbacher Energy Company, a privately owned U.S. company, dedicated to the exploration and development of hydrocarbons. Mosbacher is active in the U.S., Canada, Venezuela, India, Tunisia and Peru.

Perupetro S.A. is the state-owned entity with technical and administrative oversight of hydrocarbon assets.

Contact: Anne Sheffield
Phone: 704-382-8333
24 Hour Phone: 704-594-0681
Contact: John Barnett
Phone: 704-382-8333
24 Hour Phone: 704-594-0681