News Release
July 21, 1998

DUKE ENERGY SIGNS PERUVIAN EXPLORATION LEASE AGREEMENT

HOUSTON — PanEnergy Exploration and Production (Peru) Ltd., an affiliate of Duke Energy Corporation, has signed a license agreement with Perupetro S.A. giving the company sole rights to explore for natural gas and oil in Blocks 40 and 41 in the central region of Peru.

Blocks 40 and 41 cover approximately 2 million acres. PanEnergy is currently the operator in a similar exploration project in Peru’s Block 85, which comprises approximately 390,000 acres in the country’s central region.

Duke Energy also is one of the owners in the first integrated natural gas and electric power project in Peru, based near the town of Aguaytia. The $254 million project includes a 125 mile natural gas pipeline, 155 megawatt power plant and 250-mile electric transmission line to meet Peru’s growing energy needs.

"The agreement with Perupetro for Blocks 40 and 41 provides another opportunity for Duke Energy to expand Peru’s commercial production of hydrocarbons while increasing the potential to develop another integrated energy project similar to Aguaytia," said Bruce Williamson, president of Duke Energy International. "We have some excellent experience working in Peru and we look forward to building on that experience to expand our presence in the coming years.

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

Duke Energy International, based in Houston, develops, owns and operates upstream, mid-stream and downstream energy projects.

Duke Energy Corporation (NYSE: DUK) is a global energy company with more than $24 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. Contact Duke Energy on the World Wide Web at http://www.duke-energy.com.

Contact: John Barnett
Phone: (713) 627-4072
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com