Flores & Rucks reports third quarter results.

BATON ROUGE, La.--(BUSINESS WIRE)--Oct. 26, 1995--

FINANCIAL SUMMARY

Flores & Rucks, Inc. (FNRI) today announced earnings of $1,052,294, or $0.07 per share, for the third quarter ended September 30, 1995.

Management attributes the solid third quarter earnings to the continued rise in production, which averaged 24.7 thousand net barrels of oil equivalent (BOE) per day. During the third quarter, production increased 75% to a total of 2.3 million BOE, as compared to 1.3 million BOE for the same period in 1994. Greater cost efficiencies also contributed to FNRI's earnings, decreasing the Company's lease operating expenses (LOE) per BOE 19% for the third quarter of 1995 to $3.77 from $4.68 for the third quarter of 1994.

James C. Flores, Chairman and CEO, stated, "Our dramatic third quarter results continue to illustrate our combination of powerful assets, highly skilled personnel and sound strategy implementation which has resulted in exceeding others' expectations for Flores & Rucks. We will continue to strive for meaningful production and reserve growth in 1995 and beyond."

Increasing 99%, FNRI's third quarter operating revenues were $34.6 million as compared to third quarter 1994 revenues of $17.4 million. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 169% to $21.1 million, or $1.40 per share. Discretionary cash flow also increased to $15.5 million, or $1.03 per share, a 144% increase as compared to the same period one year ago.

As management continues to develop and exploit its already productive assets, a large percentage of cash flow will continue to fund FNRI's capital expenditure program. Capital expenditures relating to exploration and development drilling for the first nine months of 1995 totaled $51.2 million, of which $13.4 million was spent during the third quarter. During this nine month period, the Company has also spent $4.4 million to shoot and acquire 3-D seismic.

To reduce the risk of commodity price volatility, FNRI hedges a portion of its production. During the third quarter of 1995, FNRI hedged 675 MBbls at an average hedge price of $18.18. As of September 30, 1995, the Company's open hedge position for the three months ending December 31, 1995 was 1,050 MBbls with an average price of $18.19 for the three month period.

DRILLING UPDATE - SIGNIFICANT WELLS

FRNI continues its successful drilling program at its East Bay and Main Pass properties with a success rate of 95% for such properties during the first three quarters of 1995. Some of the highlights include:

"End Zone" Prospect - Completing

The SL 15016 #1 exploratory well was drilled to a total depth of 13,300 feet and encountered 49 net feet of hydrocarbon pay in the "R" sand. The well is undergoing completion and is expected to be online in late November. The "R" sand is estimated to contain potential reserves of 30 BCFE.

"High Five 4" Prospect - Producing

The SL 1007 #47 development well, located in the South Pass 24 field, was drilled to a total depth of 9,621 feet and encountered 51 feet of net oil and gas pay in the "N2", "O" , "O2" and "P" sands. The well was completed in August in the "O2" and "P" sands and is currently producing at a rate of approximately 2,581 BOPD and 1,532 MCFPD.

"Talladega" Prospect - Producing

The SL 1012 #151 S/T development well, located in the South Pass 27 field, was drilled to a total depth of 6,530 feet and encountered 54 feet of net oil and gas pay in the "I4" and "K" sands. The well was completed in July in the "I4" and "K" sands and is currently producing at a rate of approximately 1,081 BOEPD.

"Caps" Prospect - Producing

The OCS 694 #121 S/T development well, located in the South Pass 27 field, was drilled to a total depth of 9,173 feet and encountered 195 feet of net oil and gas pay in the "L", "M" and "N" series sands. The well was completed in September and is currently producing in the "M2" and "M4" sands at a rate of approximately 4,200 MCFPD.

Flores & Rucks, Inc. is an independent energy company engaged in the acquisition, exploration, development and production of crude oil and natural gas. For further information, please contact Investor Relations at [phone] or mail requests to 8440 Jefferson Highway, Suite 420, Baton Rouge, LA 70809. You may also contact Investor Relations via the Internet at the following e-mail address: [e-mail] -0-

                        FLORES & RUCKS INC.
                          FINANCIAL DATA
     (In thousands, except per share, production and pricing data)

                               Three Months Ended  Nine Months Ended
                                 September  30,      September  30,
                                1995        1994     1995      1994

Operating revenues            $34,609     $17,421   $90,481  $51,827
Operating income                5,454      (1,527)   13,576   (3,406)
Net income (loss)               1,052      (2,445)      802   (5,085)
Earnings (loss) per share        0.07        N.M.      0.05     N.M.
EBITDA                         21,136       7,850    52,820   22,780
EBITDA per share                 1.40        N.M.      3.51     N.M.
Discretionary cash flow        15,493       6,345    36,594   18,859
Discretionary cash flow
 per share                       1.03        N.M.      2.43     N.M.
Weighted avg. shares of
 common stock outstanding      15,044        N.M.    15,043     N.M.

                           PRODUCTION AND PRICING DATA

                               Three Months Ended
                                 September  30,
                                1995        1994

Oil production (barrels)     1,709,412    1,045,704
Average price per barrel       $ 16.81      $ 14.72
Gas production (mcf)         3,360,934   1,487,0455
Average price per mcf           $ 1.62       $ 1.50

CONTACT: Flores & Rucks Inc.

James C. Flores, 504/927-1450

William W. Rucks IV, 318/989-5900

Robert L. Belk, 504/927-1450