APAC benefited from improved production and sales in all areas, including asphalt, aggregate and ready-mix concrete. A 10 percent increase in the average natural gas price and lower domestic dry hole costs were the largest components in the improvement. As previously announced, the second well on the Okwori prospect offshore Nigeria encountered 297 feet of oil in a number of reservoirs. South, has been drilled to a total depth of 11,810 feet. Ashland's preliminary evaluation indicates 378 feet of net oil pay in several zones.
Casing has been set, the rig is still on location and evaluation is ongoing.
Increased tonnage and stronger results from almost all mining operations also contributed to the improvement. However, two major equipment moves scheduled for completion later in calendar 1996 should lead to lower mining costs, higher production and increased revenues for Ashland Coal. Looking forward, we anticipate continued strength in earnings from Ashland Chemical, APAC and Valvoline. In addition, gasoline and distillate inventories are at seasonal lows, and demand is strong. Consequently, we are optimistic about our results for the September quarter and fiscal 1996.