News Release
Jan. 26, 1998

DUKE ENERGY CORPORATION, BIJENAVENTIJRA AND MOSBACHER BEGAN DRILLING PERUVIAN WELL

HOUSTON and LIMA -- PanEnergy Exploration and Production (Peru) Ltd., an affiliate of Duke Energy Corporation and its partners Buenaventura Ingenieros S.A. and Mosbacher Peru L.L.C., today spudded (began drilling) their San Alejandro 1X (SA1X) exploration well in Peru’s Block 85 of the Ucayali Basin. Block 85 comprises approximately 390,000 acres in a central basin of eastern Peru known as the Ucayali Basin near the town of San Alejandro. PanEnergy Exploration and Production (Peru) Ltd., is operator of Block 85 with a 22.5 percent interest. Other partners include the majority holder, Buenaventura Ingenieros S.A. with a 55 percent interest and Mosbacher Peru L.L.C. with a 22.5 percent interest. PanEnergy and its partners signed the license agreement with Perupetro S.A. on Aug. 15 giving the companies the right to explore for and produce natural gas and oil in Block 85. “The speed at which this project has moved forward indicates commitment of the Block 85 partners to work closely with Perupetro in exploring the contract area,” said Bruce Williamson, president of PanEnergy Exploration and Production (Peru) Ltd. “We plan on drilling the SA1X well to test the lower Cretaceous, Jura-Triassic and upper Paleozoic formations.” Alberto Benavides, chairman of Buenaventura, said “It is particularly satisfactory for Buenaventura to be associated with Duke Energy and Mosbacher in this exploration venture. As a Peruvian company, Buenaventura is proud to participate in this effort designed to increase the hydrocarbon reserves of Peru.” Buenaventura Ingenieros S.A. is a subsidiary of Compania de Minas Buenaventura S.A. (NYSE:BVN), which is the most important Peruvian producer of precious metals 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 responsible for the promotion of hydrocarbon exploration and production in Peru. Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $22 billion in assets. Duke Energy companies provide electric service to approximately 2 million customers; operate pipelines that deliver 12 percent of the natural gas consumed in the United States; and are leading marketers of electricity, natural gas and natural gas liquids. Globally the companies develop, own and operate energy facilities and provide engineering, management, operating and environmental services. In Peru, the company is an owner of the first integrated natural gas and electric power project near the town of Aguaytia, the O&M (operations and maintenance) contractor of the power plant and transmission lines, and also acts as technical advisor to the project on natural gas issues. The project is scheduled to begin operation in 1998. Contact Duke Energy on the World Wide Web at http://www.duke-energy.com

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