Phoenix announces another gas discovery; Tut-21 well flows at combined rate of 59.7 million cubic feet of gas and 5,880 barrels of oil and condensate per day.

OKLAHOMA CITY--(BUSINESS WIRE)--Jan. 9, 1996--The Phoenix Resource Companies, Inc. (AMEX:PHN) announced today that a new gas and condensate field has been discovered on the Khalda Concession in Egypt. The discovery well, Tut-21, was drilled to a total depth of 13,400 feet and flowed at a combined rate of 59.7 million cubic feet of gas and 5,880 barrels of oil and condensate per day. Electric log analysis indicates 260 feet of net hydrocarbon pay were encountered in various Jurassic age sandstone reservoirs.

During initial testing the well produced up to 26.7 million cubic feet of gas and 617 barrels of 51 API gravity condensate per day through a 1 inch choke with a wellhead pressure of 1,858 psi from four intervals totaling 40 feet of perforated sands in the bottom of Unit 2F of the Khatatba formation, 22 million cubic feet of gas and 703 barrels of condensate per day through a 3/4 inch choke with a wellhead pressure of 2,065 psi from 38 feet of perforated sands in the top of Unit 2F of the Khatatba formation, and 11 million cubic feet of gas and 4,560 barrels of 41 API gravity oil per day through a 1 inch choke with a wellhead pressure of 1,100 psi from three intervals totaling 38 feet of perforated sands in the Unit 2B of the Khatatba formation.

The Tut-21 is the third major gas discovery on the Khalda Concession within the last year. The Shams-1XA tested at a rate of 24 million cubic feet of gas per day and the Salam South tested at a combined rate of 45.1 million cubic feet of gas and 2,695 barrels of condensate per day. These discoveries are being evaluated and additional gas development of these areas is being deferred until such time as firm commitments are made to connect these fields and other shut-in gas fields in the Khalda Concession and other Western Desert Concessions to the Egyptian gas grid. Current plans are to drill at least three more gas exploratory wells during the first half of 1996.

A wholly-owned Phoenix subsidiary, Phoenix Resources Company of Egypt, owns 40 percent of the contractor interest in the Khalda Concession; Repsol Exploracion Egipto, S.A., operator of the group, owns 50 percent; and Samsung Company Ltd. owns the remaining 10 percent. The Khalda Concession is operated by Khalda Petroleum Company, an Egyptian corporation owned jointly by the contractors and the Egyptian General Petroleum Corporation, the national oil company of Egypt.

The Phoenix Resource Companies, Inc. is an oil and gas exploration and production company headquartered in Oklahoma City, Oklahoma, with its principal assets located in the Arab Republic of Egypt.

CONTACT: The Phoenix Resource Companies, Inc., Oklahoma City 

Debora Bingham, 405/728-5100