American Resources of Delaware Inc. Announces Closing of Teco Acquisition.

VERSAILLES, Ky.--(BUSINESS WIRE)--March 10, 1998--American Resources of Delaware Inc. (NASDAQ: GASS) ("ARI") today announced that the acquisition of all of the offshore Gulf of Mexico assets of TECO Oil & Gas, Inc. ("TECO"), a subsidiary of TECO Energy, Inc., was consummated on March 5, 1998. The acquisition was effectuated through ARI's wholly owned subsidiary, American Resources Offshore, Inc. ("ARO"), for a total purchase price of $57.68 million.

The properties acquired include an average working interest of approximately 30% in 40 federal lease blocks and 1 Texas state lease block in the offshore Gulf of Mexico. The leases cover a total of 197,468 acres and contain five currently producing wells and one additional well awaiting connection to production facilities. ARO also acquired access to approximately 12,500 square miles of 3-D seismic data with a substantial value and the interest of TECO in two joint ventures. A preliminary reserve analysis obtained from an independent engineering firm retained by the Company indicates that the present value (discounted 10%) of the existing proved, probable and possible reserves is approximately $100 million. ARO has identified 27 initial drilling locations and has also become a participant in an ongoing exploration program operated by a team of geoscientists using state-of-the-art equipment and technology.

President and C.E.O. of ARI, Rick Avare, commented: "This is by far the most important acquisition in the Company's history. Not only does it increase our asset base well past the $100 million level, but it also achieves our primary goal of growing through acquisitions with exploration and developmental potential. Now that we have surpassed what we believe is a financial watermark, we hope to finally receive some long overdue recognition in the marketplace. Additionally, we now have ample prospects to take our exploration and development program into the twenty-first century. We are extremely pleased with the outcome and with the expert manner in which Bill Gray and the entire staff at ARO acted to complete this transaction."

Of the purchase price, $22.68 million was paid in cash or with funds borrowed under the Company's existing credit facility with Den norske Bank, AS ("Den norske"), $16.5 million was funded through a new facility provided by Den norske, and the balance of $18.5 million was financed by TECO in the form of a promissory note which is due and payable on Oct. 1, 1998. The Company also entered into a Warrant Agreement wherein TECO was granted warrants to acquire 600,000 shares of the common stock of the Company at $2.67 per share together with warrants to acquire common stock at par value of $0.00001 in an amount equal to ten percent (10%) of the Company's outstanding and issued shares if the note is not paid in full by Oct. 1, 1998, warrants to acquire an additional five percent (5%) if the note is not paid in full by Jan. 1, 1999, and warrants to acquire an additional five percent (5%) if the note is not paid in full by April 1, 1999. The Company anticipates that the funds will be available to pay the note on or before Oct. 1, 1998, and is in the process of retaining a financial advisor to assist it in the matter.

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.

For more information, contact the Company's Investor Relations Department at 606/873-5455 or visit our website at www.arisgc.com.

CONTACT: American Resources of Delaware Inc., Versailles

Investor Relations, 606/873-5455