Belco Oil & Gas Corp. Reports Update On Westport Resources Corp. Merger and Second Quarter 2001 Results.

    Business Editors

      NEW YORK--(BUSINESS WIRE)--August 10, 2001--Belco Oil & Gas Corp.
(NYSE:BOG) - As previously announced, Belco has entered into a
definitive agreement to merge with Westport Resources Corp.
(NYSE:WRC).
      A special meeting of shareholders of both companies to vote on the
transaction is scheduled for August 21, 2001.

                            SECOND QUARTER

      Belco's second quarter 2001 net income per basic common share was
$0.85 compared to a net loss of $0.76 per basic common share in second
quarter 2000. The substantial increase in net income was principally
the result of non-cash mark-to-market gains representing the partial
reversal of unrealized non-cash mark-to-market losses reported in
prior periods as required by existing accounting rules. The weighted
average basic common shares outstanding used in calculating basic
earnings per share were 32.9 and 31.3 million shares for 2001 and
2000, respectively.
      Oil and gas revenues net of hedging activities increased 4% to
$54.5 million from $52.5 million in the second quarter of 2000. This
increase is due to substantially higher realized natural gas prices.
Second quarter 2001 operating cash flow, before working capital
changes, was $14.4 million or $0.40 per basic common share compared to
$23.9 million reported in the second quarter of 2000, which included
production from certain North Texas properties which were sold during
the third quarter of 2000. Average hedged oil prices realized declined
by 7% to $23.01 per barrel during the second quarter of 2001, compared
to $24.68 per barrel realized in the prior year comparable period
while average hedged natural gas prices realized increased by 44% to
$3.60 per Mcf during the second quarter of 2001 compared to $2.50 per
Mcf realized in the prior year second quarter.
      Second quarter 2001 non-hedge commodity price risk management cash
settlements reduced reported revenues by $15.7 million due to the
substantial rise in commodity prices that exceeded committed contract
amounts reported on during this quarter. In the second quarter of
2000, when natural gas prices were substantially lower, Belco paid out
$7.5 million in non-hedge cash settlements.
      Second quarter 2001 average daily production was approximately 162
million cubic feet equivalent (MMcfe), 3% lower than the first quarter
of 2001 and 13% lower than the prior year second quarter. The decline,
when compared to the second quarter of 2000, was due in part to the
sale of certain North Texas properties, which were sold during the
third quarter of 2000, and to delays Belco has experienced in
obtaining oilfield services necessary to drill and complete certain
new wells.

                           OPERATIONS UPDATE

      Elm Grove Update

      Four rigs are targeting Cotton Valley and Hosston sands in the Elm
Grove field in northern Louisiana. A total of 23 wells were spud in
the first half of 2001 and gross production has increased from 34,964
Mcfd on January 1, 2001 to a recent peak of 51,404 Mcfd on July 23,
2001. The four rig program is planned to continue into next year with
ongoing downspacing of the field to 80 acres. Belco's working interest
is 40% in most of the wells.

      Georgetown Update

      Two wells targeting the Georgetown formation reached total depth
in the second quarter. The first well, the Independence #1-H (45% WI),
was a re-entry of an Austin Chalk producer close to the main
Georgetown development area and it had initial production on June 8 of
21,854 Mcfd.
      The second well, the Weiss #2-H (45% WI), was a high risk step-out
that tested the Georgetown in southern Washington County, Texas. No
significant fractures were encountered and the well was not completed.
Three rigs are currently drilling for Belco in Washington and Grimes
counties and Belco remains optimistic that many successful locations
will be drilled on its acreage.

                                 OTHER

      Preferred Dividends

      As previously reported, Belco's credit facility and the indentures
governing its subordinated debt restrict the payment of dividends. As
a result of recorded unrealized non-cash mark-to-market losses in
prior periods as required by existing accounting rules, payment of the
June 2001 dividend on Belco's preferred stock was prohibited by the
restriction contained in Belco's 10-1/2% bond indenture. Reported
second quarter 2001 net income, as defined in the 10-1/2% bond
indenture, was sufficient to eliminate this restriction. As separately
announced today, the Board of Directors of Belco declared the second
and third quarter 2001 dividends of $0.40625 per shared per quarter on
the 6-1/2% Preferred Stock of the Company (NYSE:BOGPR), payable
September 15, 2001, to shareholders of record as of August 31, 2001.
      Belco Oil & Gas Corp. is an independent energy company engaged in
the exploration, development, acquisition and production of natural
gas and oil.

      Forward-Looking Estimates

      This press release includes forward looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. The forward-looking statements
provided in this press release are based on management's examination
of historical operating trends. Belco cautions that its future oil and
natural gas production, revenues and expenses are subject to all of
the risks and uncertainties normally incident to the exploration for
and development and production and sale of oil and gas. These risks
include, but are not limited to, price volatility, inflation or lack
of availability of goods and services, environmental risks, drilling
risks, regulatory changes, the uncertainty inherent in estimating
future oil and gas production or reserves. Additional risks are
included in Belco's 2000 Annual Report on Form 10-K as filed with the
Securities and Exchange Commission.

*T
                         BELCO OIL & GAS CORP.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except per share data)
                              (Unaudited)

                            Three Months Ended      Six Months Ended
                                 June 30,               June 30,
                            2001          2000      2001        2000
                            ----          ----      ----        ----
REVENUES:
 Oil and gas sales, net of
  hedging activities     $54,548        $52,468   $127,778    $97,842
 Non-hedge commodity price
    risk
   management activities
    cash settlements(a)  (15,726)        (7,530)   (47,685)  (12,995)
   Interest and other         21            250        145       500

      Net revenues        38,843         45,188     80,238    85,347

      COSTS AND EXPENSES:
   Oil and gas operating
        expenses          10,021          8,272     19,079    15,201
   Production taxes        4,943          3,916     10,881     7,522
   Depreciation, depletion
     and amortization     14,484         14,389     29,192    28,166
   General and
    administrative         1,865          1,607      3,565     3,145
   Interest expense        7,581          7,475     14,571    13,602
   Non-cash change in fair
    value of derivatives (45,075)        43,785    (91,836)   65,963

      Total costs and
        expenses          (6,181)        79,444    (14,548)  133,599

      INCOME (LOSS) BEFORE
        INCOME TAXES      45,024        (34,256)    94,786   (48,252)

      PROVISION (BENEFIT) FOR
        INCOME TAXES      15,759        (11,989)    33,175   (16,888)

      NET INCOME (LOSS) BEFORE
        CUMULATIVE EFFECT OF
        CHANGE IN ACCOUNTING
            PRINCIPLE     29,265        (22,267)    61,611   (31,364)

      CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
         PRINCIPLE - NET      --             --     (4,324)       --

      NET INCOME (LOSS)   29,265        (22,267)    57,287   (31,364)

      PREFERRED STOCK
        DIVIDENDS (b)      1,270          1,541      2,585     3,152

      NET INCOME (LOSS) AVAILABLE
        TO COMMON STOCK  $27,995       $(23,808)   $54,702  $(34,516)

      PER SHARE DATA:
Basic:
  - Net income (loss) before
     cumulative change
      in accounting
        principle          $0.85         $(0.76)     $1.80    $(1.11)

  - Net income (loss)      $0.85         $(0.76)     $1.67    $(1.11)

Diluted:
  - Net income (loss) before
        cumulative change
          in accounting
             principle     $0.80         $(0.76)     $1.70    $(1.11)

  - Net income (loss)      $0.80         $(0.76)     $1.58    $(1.11)

AVERAGE NUMBER OF COMMON
    SHARES USED IN COMPUTATION:
- Basic                   32,924         31,300     32,721    31,200

- Diluted                 36,453         31,300     36,302    31,200

      (a) Includes cash premiums received and settlements.

      (b) Cumulative preferred stock dividends in the amount of $1.3
        million for the three months ended June 30, 2001 were neither
        declared nor paid.



      The following table sets forth certain operations data for the
periods presented:

                            Three Months Ended      Six Months Ended
                                 June 30,               June 30,
                            2001          2000      2001        2000
                            ----          ----      ----        ----

Oil and gas sales, net
 of hedging
  activities (in 000's)  $54,548        $52,468   $127,778   $97,842
Weighted average sales prices:
     Oil (per Bbl)
       - Unhedged         $26.33         $27.57     $26.90    $27.70
       - Hedge settlements (3.32)         (2.89)     (4.22)    (2.68)

         Net realized     $23.01         $24.68     $22.68    $25.02
     Gas (per Mcf)
       - Unhedged          $4.17          $3.13      $5.43     $2.65
       - Hedge settlements (0.57)         (0.63)     (0.83)    (0.39)

         Net realized      $3.60          $2.50      $4.60     $2.26
Net production data:
    Oil (MBbl)               951          1,047      1,878     2,014
    Gas (MMcf)             9,072         10,645     18,518    21,051
    Gas equivalent (MMcfe)14,778         16,928     29,786    33,136
     Daily production (Mmcfe)162            186        165       182
Operations data per Mcfe:
     Oil and gas sales
        revenues (unhedged)$4.25          $3.67      $5.07     $3.36
     Hedge and non-hedge cash
        settlements        (1.63)         (1.02)     (2.38)    (0.80)
     Oil and gas operating
        expenses           (0.68)         (0.49)     (0.64)    (0.46)
   Production taxes        (0.33)         (0.23)     (0.37)    (0.23)
     General and
        administrative     (0.13)         (0.09)     (0.12)    (0.09)
     Depreciation, depletion
        and amortization   (0.98)         (0.85)     (0.98)    (0.85)

     Pre-tax operating
        profit (1)         $0.50          $0.99      $0.58     $0.93

     Cash flow             $1.48          $1.84      $1.56     $1.78

      (1)  Excludes non-cash mark-to-market commodity price risk
management activities, interest income and interest expense.

    --30--emb/ny*

    CONTACT:  Grant W. Henderson, President & COO
              [phone]
                or
              Dominick J. Golio - Chief Financial Officer
              [phone]

    KEYWORD:  NEW YORK
    INDUSTRY KEYWORD: OIL/GAS EARNINGS
    SOURCE:  Belco Oil & Gas Corp.