Basic Petroleum announces 43% increase in second quarter net income; cash flow per share up 85%; achieves 85% of 1995 net income in first six months of 1996.

NEW YORK--(BUSINESS WIRE)--July 23, 1996--Basic Petroleum International Limited announced today financial results for the second quarter and six months ended June 30, 1996.

Second quarter net profits increased 43% to $2.804 million, compared with $1.955 million in the second quarter of 1995. Earnings per share grew 39% to $0.43 from $0.31 and cash flow per share rose 85% to $0.85 from $0.46 in the previous year's second quarter. Net revenues were $7.752 million, compared with $3.991 million recorded last year.

For the first six months, net profits increased 139% to $7.171 million, compared with $3.005 million in the first six months of 1995. Earnings per share increased 133% to $1.12 from $0.48 and cash flow per share rose 145% to $1.91 from $0.78 in the first six months of last year. Net revenues reached $16.449 million, a 136% increase over the $6.983 million recorded in the same period last year.

Commenting on the results, Mme. Gilberte E. Beaux, Chairman of Basic Petroleum International Limited, said, "Our second quarter results were negatively affected by a road blockage between La Libertad and Raxruja which resulted in the loss of production for nearly a month and leaving us with only 60 days of production. Despite this, our total production in the second quarter reached 1,140,000 barrels, up 36% over the second quarter of 1995, but off 6% from the first quarter of 1996. During the fist six months of 1996, Basic produced 2,350,000 barrels, an increase of 46% from the first six months of 1995. The month of June, in particular, has shown the highest production in Basic's history with 532,000 barrels, resulting mainly from the increase in production in the Xan field."

Mme. Beaux continued, "Our investment program has progressed steadily during the second quarter and remains on track: Four new wells have been drilled in the Xan field in the northwest region of Guatemala; one exploratory well is presently being drilled in the West Central Properties; a number of our drilling facilities are being upgraded to permit higher production; and the third pipeline, which will complete our transportation network, is expected to be completed before year end."

Mme. Beaux concluded, "Also during the quarter, we strengthened Basic's financial position with the completion of the secondary equity offering which raised net proceeds of approximately $27 million. In addition to the offering, on July 18, the Intentional Finance Corporation board approved a $24 million loan for development and exploration. The combined increase in our financial position will allow us to continue to aggressively increase our production and exploration program."

Basic Petroleum International Limited is an oil exploration, development and refining company. The Company's operations are in Guatemala, with executive offices in Paris and an investor relations office in New York. The Company's shares trade on the NASDAQ National Market System under the symbol BPILF. -0-

                     UNAUDITED CONDENSED CONSOLIDATED
                STATEMENT OF INCOME AND EXPENDITURES (USD 000)
            (USD 000, except production, oil sales and price per
              barrel and earnings per share amounts)

                             Three Months Ended      Six Months Ended
                                   June 30               June 30
                               1996       1995        1996      1995

Total Revenue from
 Petroleum Operations     $   16,197 $   11,490  $   32,936  $   21,287
Oil & Asphalt Inventory
 Variation                     1,012        891         892       1,237
Government Royalties &
 State Participation          (1,921)    (1,669)     (2,954)     (2,991)
Production and Operating
 Expenses                     (4,036)    (3,298)     (8,186)     (6,097)
Oil Truck Transportation      (2,840)    (2,891)     (4,581)     (5,495)
Asphalt Truck
 Transportation                 (660)      (532)     (1,658)       (958)
Net revenues from petroleum
 operations                    7,752      3,991      16,449       6,983
General and Administrative
 Expenses                     (1,655)    (1,114)     (2,994)     (2,035)
Depreciation and Depletion    (2,746)      (923)     (5,072)     (1,850)
Interest income/(expenses)
 & Other Expenses               (547)         1      (1,262)        (93)
   Net profit             $    2,804 $    1,955  $    7,171  $    3,005

   Net Profit Per
    Ordinary Share        $     0.43 $     0.31  $     1.12  $     0.48
Weighted Average Shares
 Outstanding               6,515,727  6,262,719   6,419,848   6,261,948

Production in barrels      1,140,120    840,979   2,350,121   1,604,504
Oil sales in barrels         954,259    662,682   2,003,494   1,347,782
Asphalt sales in barrels     104,764     71,633     217,652     138,054
Average oil sales price
 per barrel (in USD)      $    14.01 $    14.30  $    13.53  $    12.94
Average asphalt sales
 price per barrel (in USD)$    26.96 $    28.12  $    26.79  $    27.88

               SUMMARY BALANCE SHEET AND CASH FLOW STATEMENT (USD)

                                           Six Months Ended June 30,
                                               1996        1995

Total current assets                         34,015      18,210
Petroleum properties, net                    88,375      56,065
Total assets                             $  122,390  $   74,275

Total current liabilities                    14,711       8,124
Long-term liabilities                        17,518      16,000
Total shareholders' equity                   90,161      50,151

Total liabilities and
 shareholders' equity                    $  122,390  $   74,275

Net cash flow from operating activities        (677)      2,585
Net cash flow from investing activities     (17,232)    (18,212)
Net cash flow from financing activities      24,447      14,012
Net increase (decrease) in cash               6,538      (1,615)
Cash at end of period                    $    6,641   $   1,741

CONTACT: Stuart M.Carlisle

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or

Monica R. Bonner

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