American Resources of Delaware Annnounces Third Quarter Results of Operations.

VERSAILLES, Ky.--(BUSINESS WIRE)--Nov. 11, 1997--American Resources of Delaware Inc. (NASDAQ:GASS) (the "company") today announced results of operations for its third fiscal quarter ended Sept. 30, 1997.

Revenue for the period increased 19.5 percent to $7,079,782 as compared with $5,925,435 for the same period the prior year. Company-owned production revenues increased an impressive 166 percent for the third quarter of 1997 to $4,812,361 as compared with $1,806,357 for the same period in 1996.

Net income for the quarter was $212,806, or $0.02 per share, on operating income of $1,009,823. This compares to net income of $26,065, or less than $0.01 per share, on operating income of $670,386 during the same period in 1996. The increase in operating income is primarily attributable to an increase in production revenues of $3,006,004. The effect of this increase was partially offset by increases in depreciation, depletion and amortization expense (non-cash items) of $1,383,832, interest expense (net of interest income) of $26,847 and production expenses of $344,251. These expenses increased primarily as a result of the addition of the South Timbalier 148 property. Additionally, the company recognized $381,300 in dry hole costs for the quarter as a result of unsuccessful wells encountered in its active exploration and development program, and production volumes were decreased due to maintenance performed during the quarter in preparation for the winter months.

Rick Avare, president and CEO, stated, "We toonse the cost of unsuccessful wells. However, we believe that the value of the newly discovered reserves exceeds the developmental cost expended. The effect of our drilling efforts will be reflected on the Dec. 31, 1997 reserve report." Avare further commented that, "Notwithstanding the fact that third quarter earnings per share would have been $0.06 higher (pretax) but for these two items, we expect our shareholders to benefit over the long term. As evidenced by our activities during the third quarter, management is committed to expanding the company's reserve base and doing everything possible to maximize the value for our shareholders."

EARNINGS RECAP:

                         Quarter Ended          Nine Months Ended
                          September 30,           September 30,
                        1997       1996         1997          1996

Revenue               $7,079,782 $5,925,435  $29,606,713 $22,005,507
Income (loss)
 from operations       1,009,823    670,386    3,620,789   1,747,442
Net income               212,806     26,065      983,014     547,243
Net income per share  $     0.02 $      (a)  $      0.10 $      0.09
Primary weighted
 average shares
 outstanding           9,938,299  6,469,614    9,124,335   6,152,154

OTHER FINANCIAL DATA:

EBITDA(b)             $3,051,333 $1,343,466  $ 9,304,585 $ 4,255,618

(a)  Less than $0.01

(b)  EBITDA is earnings before interest, taxes, depreciation and
amortization.  EBITDA is presented because it is a widely accepted
financial indication of a company's ability to service and incur
debt.  EBITDA should not be considered as an alternative to earnings
(loss) as an indicator of the company's operating performance or to
cash flow as a measure of liquidity.

American Resources of Delaware Inc. is a fully integrated producer of oil and gas. The company owns pipelines and production in the Gulf Coast and Appalachian regions.

Certain of the above statements may be forward-looking that involve risks and uncertainties. Actual results may differ materially. The information contained in this news release is qualified in its entirety by the information contained in the company's current report on Form 10-QSB for the fiscal quarter ended Sept. 30, 1997.

CONTACT: American Resources of Delaware Inc., Versailles

Investor Relations, 606/873-5455