Benton Oil and Gas Company Announces Operating and Financial Guidance for 2001 and 2002.

Business Editors

CARPINTERIA, Calif.--(BUSINESS WIRE)--March 23, 2001

Benton Oil and Gas Company (NYSE:BNO) today announced the Company's expectations for operating and financial results for 2001 and 2002. This guidance is designed for investors and analysts and provides estimates of the Company's production volumes and operating costs.

                             Actual 2000  Estimate 2001  Estimate 2002

Average annual oil production
(BOPD)
                                25,700    26,000-28,000   31,00-33,000

Expenses ($ per BO):
   Operating expenses           $5.06       $4.75-5.00     $3.75-4.00
   Depletion                     1.83        2.10-2.20      2.10-2.20
   General and administrative    1.78        1.40-1.50      1.10-1.40
   Taxes other than income       0.47        0.45-0.50      0.40-0.50
                                $9.14       $8.70-9.20     $7.35-8.10

Capital expenditure projections
($MM):
   Development drilling          $41          $15-17          $26-28
   Infrastructure                  5           18-19           11-13
   Arctic Gas investment          11            4-5             1-2
   Support capital and other      11            2-3             2-3
                                 $68          $39-44          $40-46

Geoilbent oil production net to
 our 34 percent interest (BOPD) 3,600      5,000-6,000  7,000-8,000(a)
Arctic Gas oil production net to
 our 29 percent unrestricted
 interest (BOPD)                 300        500-1,000   1,000-1,500(a)

(a) Excludes any potential natural gas sales

Dr. Peter J. Hill, Benton's President and Chief Executive Officer, said, "We expect to increase the value of our Venezuelan production this year and next year compared with 2000 levels consistent with our strategy to accelerate the production of our most cost-efficient fields. Based on the early March oil price strip, the Company projects 2001 EBITDA to be $60 to $70 million, or $1.75 to $2.05 per share, and 2002 EBITDA to be $70 to $80 million, or $2.05 to $2.35 per share, which is expected to fund our capital expenditure and debt service requirements. Venezuela generates substantial cash flow while our two Russian ventures provide reserve, production and cash flow upside with little or no funding requirements from Benton."

The estimates provided above are designed to provide general guidance only and are subject to change as the Company's operating and financial environments change.

Benton Oil and Gas Company, headquartered in Carpinteria, California, is an independent oil and gas exploration and development company with principal operations in Venezuela and Russia.

This press release may contain "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. All statements other than statements of historical facts included in this release may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from the Company's expectations due to changes in operating performance, project schedules, oil and gas demands and prices, and other technical and economic factors.