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WRT ENERGY CORPORATION ANNOUNCES LETTER OF INTENT

 THE WOODLANDS RESEARCH FOREST, THE WOODLANDS, Texas, Jan. 12 /PRNewswire/ -- WRT Energy Corporation (NASDAQ-NMS: WRTE) announced today that it has entered into a letter of intent for the exchange of 1.7 million shares of its restricted common stock for a 100 percent working interest in certain producing oil and gas properties in Cameron Parish, La. The proposed transaction also includes two specialized deep drilling and workover rigs suitable for use in the company's Hackberry and Lac Blanc Fields, 20,000 feet of drill pipe and miscellaneous rig and production equipment. The effective date of the proposed transaction is Jan. 1, 1994 and the company anticipates a closing date of Jan. 20, 1994, subject to completion of title work and the execution of a definitive purchase and sale agreement containing customary terms and conditions.
 The producing properties will be acquired from Texas American Resources, Inc., and include over 3,500 gross acres of oil and gas leases, 27 productive wells and 60 shut-in wells. Current daily production from the properties is approximately 600 barrels of oil equivalent ("BOE") per day. At current market prices ($14.50 for oil and $2 for natural gas), preliminary estimates of proved reserves include 3.8 million barrels of oil and 3.6 billion cubic feet of natural gas, net to the company's interest.
 Promptly after closing, the company intends to initiate an 18-month workover and development program on the properties that is expected to significantly increase both production rates and proved reserves. The company is actively negotiating a $3 million bank line of credit to help finance the planned development program.
 "Given our current stage of development, we are very pleased to negotiate a stock for property transaction that will increase our proved oil and gas reserves by over 150 percent, while increasing our capitalization by only 16 percent; thereby preserving our cash for other acquisition and development activities," stated Steven S. McGuire, chairman and chief executive officer. "In addition, the rigs and associated production equipment should significantly reduce the cost of our ongoing development activities."
 WRT Energy Corporation, based in The Woodlands Research Forest, The Woodlands, is engaged in acquiring mature oil and gas properties in the Gulf Coast and increasing both current production and total oil and gas recovery through the use of advanced technologies, including sophisticated radioactive logging equipment owned by the company and specialized fluid separation technologies.
 -0- 1/12/94
 /CONTACT: John L. Petersen, vice president and general counsel, 713-363-0030, or Don Myers, 800-685-0127, both of WRT Energy Corporation/
 (WRTE)


CO: WRT Energy Corporation ST: Texas IN: OIL SU:

TW -- NY056 -- 1001 01/12/94 13:26 EST
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Publication:PR Newswire
Date:Jan 12, 1994
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