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ALAMCO ANNOUNCES HIGHER GAS SALES VOLUMES AND THIRD QUARTER INCOME

 CLARKSBURG, W.Va., Nov. 10 /PRNewswire/ -- Alamco, Inc. (AMEX: AXO) today announced that higher gas sales volumes and overall lower expenses contributed to increased net income and income from operations for the third quarter of 1993. The company reported net income of $368,000 (or $0.09 per share) for the quarter ended Sept. 30, 1993, as compared to net income of $204,000 (or $0.08 per share) for the third quarter of 1992. Income from operations totaled $360,000 for the quarter, an increase of $112,000 or 45 percent over income from operations for the quarter ended Sept. 30, 1992.
 John L. Schwager, president and chief executive officer, reported that third quarter 1993 gas and oil sales volumes totaled 841,800 equivalent thousand cubic feet ("EMCF"), which represents an increase of 5.2 percent over third quarter 1992 production volumes of 799,900 EMCF. The increased gas and oil sales volumes are due primarily to the positive results of the company's 1993 drilling activities. Also, Schwager stated that the company estimates third quarter 1993 sales volumes would have been higher by 60,000 EMCF had not a utility pipeline repair and a temporary production cutback reduced production volumes. Year-to-date production volumes have totaled 2,387,000 EMCF, an increase of 4.4 percent over last year.
 The increase in gas and oil sales, due to higher production volumes, was partially offset by lower average product prices received by the company in the third quarter of 1993. The company received on average $2.49 per MCF and $15.61 per barrel ("BBL") in the third quarter 1993 compared to $2.57 per MCF and $18.65 per BBL received last year.
 Total expenses for the third quarter of 1993 totaled $2,357,000, a decrease of $102,000 or 4.1 percent. Lower interest expense contributed significantly to the decrease due to the company fully repaying its revolving credit facility. This repayment was made with proceeds received from the public sale of 2,071,404 shares of common stock.
 Net income for the nine months ended Sept. 30, 1993, totaled $1,040,000 (or $0.34 per share) as compared to $1,593,000 (or $0.62 per share) for the same period in 1992, which included $1,058,000 (or $0.41 per share) related to the cumulative effect of an accounting change, net of tax. Income from operations totaled $1,187,000 for the first nine months of 1993, an increase of $545,000 or 85 percent, as compared to income from operations of $642,000 for the same period l ?year. Cash flow from operating activities for the nine months ended Sept. 30, 1993, totaled $4,514,000, an increase of $1,429,000 or 46 percent over the same period last year.
 Alamco, headquartered in Clarksburg, is an independent producer of gas and oil in the Appalachian Basin with a major operating concentration in West Virginia gas fields. The company's stock is traded on the American Stock Exchange under the symbol AXO.
 ALAMCO, INC. AND SUBSIDIARY
 Condensed Consolidated Statement of Income
 (Unaudited)
 (In thousands, except share data)
 Period Ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 Revenues:
 Gas and oil sales $2,103 $2,083 $6,644 $6,133
 Well tending income 555 578 1,645 1,772
 Other 59 46 178 152
 Total revenues 2,717 2,707 8,467 8,057
 Expenses:
 Operating 1,046 970 3,115 2,882
 General and
 administrative 564 569 1,730 1,753
 Depreciation, depletion
 and amortization 695 739 2,060 2,214
 Interest 52 181 375 566
 Total expenses 2,357 2,459 7,280 7,415
 Income from operations 360 248 1,187 642
 Other nonoperating
 income, net 225 52 308 145
 Income before income taxes
 and cumulative effect of
 DD&A accounting change 585 300 1,495 787
 Income tax provision 217 96 455 252
 Income before cumulative
 effect of DD&A
 accounting change 368 204 1,040 535
 Cumulative effect of DD&A
 accounting change, net
 of tax -- -- -- 1,058
 Net income 368 204 1,040 1,593
 Per share:
 Income before cumulative
 effect of DD&A
 accounting change $0.09 $0.08 $0.34 $0.21
 Cumulative effect of
 DD&A accounting change,
 net of tax -- -- -- $0.41
 Net income per share $0.09 $0.08 $0.34 $0.62
 Weighted average
 number of shares
 outstanding 3,981,995 2,562,043 3,035,300 2,553,841
 Other Selected Financial Data
 Cash flow from
 operations $1,698 $892 $4,514 $3,085
 -0- 11/10/93
 /CONTACT: Jane Merandi of Alamco, 1-800-873-2526/
 (AXO)


CO: Alamco, Inc. ST: West Virginia IN: OIL SU: ERN

KC-DM -- PG011 -- 2809 11/10/93 13:56 EST
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Date:Nov 10, 1993
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