[2] HOUSTON EXPLORATION COMMITS MORE PRODUCTION TO HEDGING PROGRAM; INCREASES EFFECTIVE CEILING PRICE FOR FOURTH QUARTER VOLUMES.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Oct. 23, 2000

The Houston Exploration Company (NYSE:THX) today announced that it is adding to the volumes it hedges for November and December. The additional volumes will add 40,000 MMBtu per day to November hedged production and 50,000 MMBtu per day in December. The Company hedged these additional volumes with swap prices averaging $5.10 per MMBtu in November and $5.19 per MMBtu in December. This effectively raises the ceiling price from $3.55 to $4.05 on hedged volumes for the period.

At this time The Houston Exploration Company has not committed to any further hedges, but is evaluating these opportunities as part of its risk management policy. The various structures being considered are commensurate with providing a stable operating environment while not limiting the Company's upside potential.

The Houston Exploration Company (NYSE:THX) is a Houston-based independent natural gas and oil company engaged in the exploration, development and acquisition of domestic natural gas and oil properties. The Company's offshore properties are located in the Gulf of Mexico and its onshore properties are located in South Texas, the Arkoma basin, South Louisiana, East Texas, and West Virginia. Information on the Company can be found on the Company's web site at (www.houstonexploration.com).

Note: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act that involve risks and uncertainties, including price volatility, development, operational, implementation and opportunity risks, and other factors described from time to time in the company's publicly available SEC reports, which could cause actual results to differ materially from those expected.