Castle Energy announces second quarter earnings.

RADNOR, Pa.--(BUSINESS WIRE)--May 16, 1995--Castle Energy Corp.(a) (NASDAQ/NNW:CECX) (the "Company") reported earnings of $36,000 (1 cent per share) for the three month period ended March 31, 1995.

This compared to earnings of $6,699,000 (56 cents per share) for the three months ended March 31, 1994.

Joseph L. Castle II, chairman and chief executive officer, attributed the decrease in earnings to the termination of the Company's refined product Offtake Agreements with Metallgesellschaft Corp. ("MG") and to abnormally low refining margins after termination of the Offtake Agreements.

The Offtake Agreements with MG were terminated as part of a settlement with MG. The Company, as previously reported, realized a gain of $391,000,000 from the MG Settlement.

Castle noted that the Company's natural gas marketing and exploration and production segments achieved pre-tax profits of $4,995,000 for the quarter and $10,076,000 for the first six months of the fiscal 1995.

The Company previously announced plans to sell or close its refineries not later than Sept. 30, 1995. After the refineries are sold or closed, the Company's operations will consist of its natural gas marketing and exploration and production businesses.

One of the Company's refining subsidiaries, Powerine Oil Co. ("Powerine"), has obtained interim financing while the Company seeks to sell it. The other refining subsidiary, Indian Refining Ltd. Partnership ("IRLP") is currently negotiating an interim financing facility. If IRLP is unable to obtain such financing by the end of the month, the Company may have to close its Indian Refinery.

The Company currently owns two refining subsidiaries, IRLP and Powerine. The Company, through various subsidiaries and affiliates, also owns a gas sales contract with Lone Star Gas Co., a 77-mile interstate pipeline in Rusk County, Texas and related gas contracts and interests, and operates approximately 450 oil and gas wells nationwide. -0- (a) Castle Energy Corp. is not affiliated with Castle Oil Corp. -0-

                         Castle Energy Corp.

Quarter Ended March 31,   (second fiscal quarter):

                                      1995           1994
                                      ----           ----

Revenues                         $225,868,000    $193,022,000
Net income                       $     36,000    $  6,699,000
Per share:

    Average shares                  6,712,000      12,071,000
    Net income                           $.01            $.56

Six Months Ended March 31,

Revenues                         $538,944,000(b) $415,058,000
Net income                       $ 14,120,000    $ 15,082,000

    Average shares                  6,917,000      11,096,000
    Net income                          $2.04           $1.37

(b) Includes non-recurring $391,143,000 gain from the MG Settlement
    and non-recurring $346,106,000 provision for losses on assets to
    be disposed of.

CONTACT: Castle Energy, Blue Bell

Donald L. Marsh Jr., 610/995-9400