Carbon Energy Corporation Appoints KPMG LLP as New Independent Accountants.

Business Editors

Carbon Energy Corporation (AMEX: CRB) announced today that it has appointed KPMG LLP ("KPMG") as its independent auditors for 2002. Following an evaluation of firms, the decision to appoint KPMG was recommended by the Audit Committee of Carbon's Board of Directors and approved by the Board of Directors on July 8, 2002.

KPMG replaces Arthur Anderson LLP ("Andersen") as the company's independent accountants. The decision to change auditors was not the result of any disagreement between the company and Arthur Andersen on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.

Carbon Energy Corporation is a Denver, Colorado-based natural gas and crude oil exploration and production company with offices in Denver and Calgary, Alberta. Carbon's United States operations are conducted through its subsidiary, Carbon Energy Corporation (USA). Carbon's Canadian operations are conducted through its subsidiary, CEC Resources Ltd. Carbon's U.S. and Canadian operations and reserves are weighted toward natural gas, which accounts for approximately 90% of its proved reserves and production. Carbon's focus is on the continued development of its extensive natural gas properties in the Rocky Mountain region of the United States and in Central Alberta, with emphasis on the Piceance and Uintah Basins of Colorado and Utah and the Carbon and Rowley areas of Alberta.

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect the company's operations, financial performance and other factors as discussed in the company's filings with the Securities and Exchange Commission. Among the factors that could cause results to differ materially are those risks discussed in the Company's Form 10-K for the year ended December 31, 2001.