Box Energy Purchases 30% of Outstanding 8 1/4% Convertible Subordinated Notes.

DALLAS--(BUSINESS WIRE)--Oct. 23, 1997--Box Energy Corporation announced today that holders of $16.7 of $55 million, or 30%, of its Convertible Subordinated Notes due 2002 had tendered their notes under the Company's repurchase offer that had been made pursuant to a change in control of the Company. The purchase will be made for cash from working capital at par plus accrued interest. Settlement date is October 28, 1997. The purchase will reduce annual interest expense by $1.38 million and net carrying costs by $0.5 million. Fully diluted Class B shares outstanding will be reduced by 1.5 million shares to 20.6 million shares.

"The repurchase does not adversely affect our ability to continue with our program to increase and diversify our reserve base while reducing overhead expenses," said James A. Watt, Box Energy's President.

Box Energy Corporation (NASDAQ NMS: BOXXA and BOXXB and PSE symbol: BXCA.P and BXCB.P) is an independent oil and gas exploration and production company headquartered in Dallas, Texas.

CONTACT: Steven J. Craig, Sr. Vice President

Box Energy Corporation

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