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ABOVE-MARKET PRICE GAS PRODUCTION RISES AT KCS ENERGY

 ABOVE-MARKET PRICE GAS PRODUCTION RISES AT KCS ENERGY
 HOUSTON, July 21 /PRNewswire/ -- KCS Energy production of natural


gas under an above-market price contract has increased 180 percent from 28,000 Mcf in January to a current level of 78,000 Mcf and is expected to increase as development drilling continues, James W. Christmas, president of KCS Energy, Inc. (NASDAQ: KCSE) told a meeting of financial analysts here today.
 Christmas said KCS Energy's share of production from the Bob West field in Starr and Zapata counties in Texas is under contract to Tennessee Gas Pipeline Co. at an above-market price. The price for July is $6.69 per Mcf plus reimbursement of severance taxes. The contract, which runs until January, 1999 and requires Tennessee to take or pay for 85 percent of deliverability, was upheld in June by the Bexar County District Court in San Antonio.
 KCS Energy has a 25 percent working interest in the gas produced from the Bob West field under the contract. Other working interest owners are Tesoro Exploration and Production Co. and Coastal Corporation.
 Christmas told the analysts that KCS Energy's earnings and cash flow would "improve significantly" as a result of the court's decision and the increased production.
 KCS Energy currently estimates its proved gas reserves in the Bob West field are 4.2 Bcf, up 120 percent from 1.9 Bcf at Sept. 30, 1991. KCS Energy plans further development in the Bob West field as well as in the adjoining Falcon field where KCS Energy has a 100 percent working interest. Production from both fields is under the Tennessee contract.
 One of the nation's 100 largest oil and gas producers, KCS Energy is engaged in oil and gas exploration and production, natural gas transporation and energy services with operations in Texas, Louisiana, Mississippi, New York, New Jersey, Virginia and Pennsylvania.
 -0- 7/21/92
 /CONTACT: Henry A. Jurand of KCS Energy, 908-632-1770, or Michael Bourke of Gavin Anderson & Co., 212-921-1060, for KCS Energy/
 (KCSE) CO: KCS Energy, Inc. ST: Texas, New Jersey IN: OIL SU:


SM-KW -- NY100 -- 1502 07/21/92 16:23 EDT
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Publication:PR Newswire
Date:Jul 21, 1992
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