American Resources of Delaware, Inc. announces acquisition, joint venture and merger option.

LEXINGTON, Ky.--(BUSINESS WIRE)--July 8, 1996--American Resources of Delaware, Inc. ("ARI")(NASDAQ Small Cap: GASS) announced today that it has acquired the working interest of Century Offshore Management Corporation in ten oil and gas wells together with the exploration rights on the property known as South Timbalier 148 located in the Louisiana offshore region of the Gulf of Mexico.

In a related transaction, ARI also purchased one-third of Century's contract rights to participate in the exploration and development in three separate onshore, well recognized Salt Dome properties also located in the Gulf Coast region of Louisiana with combined acreage in excess of 100 square miles.

These transactions collectively are expected to add approximately 17 Billion Cubic Feet ("Bcf") equivalent of proven reserves and create significant exploration opportunities as well as enhance cash flow. The consideration for the properties is approximately $25.4 million payable in cash, stock and relinquishment of an existing promissory note payable to ARI from Century.

ARI also entered into a favorable merger option with Century Offshore Management Corporation whereby ARI, at its sole option, has the right to require a merger between the Company and Century. The merger option is exercisable until June 30, 1997. ARI has made no decision on the merger option at this time.

"Obviously we are very pleased that our expanding relationship with Century has resulted in this important transaction. These additional offshore Gulf reserves, combined with our existing Gulf reserve base, bring us much closer to our goal of becoming a significant Gulf Coast producer. They also allow us to deliver substantially more company-owned gas to our expanding customer base," stated Rick Avare, President and CEO.

Board Chairman Doug Hawthorne said that "the opportunity to develop Gulf Coast Salt Domes with Century, a proven, low-cost finder, utilizing their latest technology and geological team is particularly exciting because of the long term growth potential these prospects represent."

American Resources of Delaware, Inc., is a fully integrated producer of oil and gas. The Company owns and operates pipelines, produces and markets gas to commercial and industrial end users as well as certain utilities in the Eastern United States and owns a major interest in an offshore turn-key drilling Company.

CONTACT: American Resources of Delaware, Inc., Lexington

Investor Relations Department, 606/873-5455 or

602/945-9195

or

JDK & Associates

714/222-2955