Energy Search, Incorporated Completes Merger With EOG Tennessee, Inc., a Subsidiary of EOG Resources, Inc.

Business Editors

KNOXVILLE, Tenn.--(BUSINESS WIRE)--July 20, 2001

Energy Search, Incorporated (Nasdaq:EGAS) today announced the completion of its merger with EOG Tennessee, Inc., a subsidiary of EOG Resources, Inc. a Houston-based developer and producer of natural gas (NYSE:EOG).

Shareholders of the Knoxville-based oil and gas exploration and production company will receive $8.22 per share for all outstanding shares of Energy Search common and preferred stock upon presentation of their stock certificates. Holders of Series A Warrants will receive $0.87 per share, which represents the difference between the $8.22 merger consideration per share and the $7.35 adjusted exercise price of the Series A Warrants.

"We are pleased to finalize this merger and look forward to growing our operations as part of the EOG family," said Charles P. Torrey Jr., Chief Executive Officer of Energy Search. "We are confident that the terms and conditions of this deal will benefit all our shareholders."

Shareholders and Series A Warrant holders will begin receiving transmittal letters and instructions from American Stock Transfer & Trust Company, paying agent for the transaction, detailing the procedure for surrender of certificates and payment. For additional information about this press release, please contact Barry Rosenthal at [phone].

Energy Search common stock and Series A Warrants will be delisted from the Nasdaq SmallCap Stock Market and the Boston Stock Exchange effective July 20, 2001.

First Union Securities Inc. of Houston, Texas initiated the transaction, advised Energy Search's Board of Directors and issued a fairness opinion on the transaction.

Wunderlich Securities, Inc. of Memphis, Tenn., who in the past had been instrumental in providing equity capital for the company, rendered investment banking advisory services to Energy Search in connection with this transaction.

Energy Search, Inc. (Nasdaq:EGAS) is an independent oil and gas exploration and production company focused primarily on developmental drilling and production of natural gas reserves in the Appalachian Basin.

EOG Resources, Inc., is one of the largest independent (non-integrated) oil and gas companies in the United States and is the operator of substantial proved reserves in the U.S., Canada and offshore Trinidad. EOG Resources, Inc., is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG".

For further information contact Charles P. Torrey, Chief Executive Officer at 865-531-6562 or David R. Evanson, Gregory FCA Communications, at 610-642-8253.