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AMERICAN EXPLORATION COMPANY ANNOUNCES AMENDMENT TO DEBT AGREEMENT

 HOUSTON, Feb. 19 /PRNewswire/ -- American Exploration Company (AMEX: AX) today announced that it had reached agreement with its institutional lenders to amend the terms of the note purchase agreement relating to $35 million of 11 percent subordinated notes due Dec. 31, 2001.
 The amendment enables the company to increase its bank indebtedness from the current level of $54 million up to $65 million as needed prior to July 1, 1993. The company currently has a $60 million bank credit facility plus a $7.5 million working capital facility. Under the terms of its bank credit agreement, the amount available to the company is scheduled to be redetermined in March and September of each year. As part of the amendment, the company also agreed to a limit of $7.0 million on exploration expenditures during the first half of 1993.
 Commenting on this amendment, Mark Andrews, chairman and CEO, said, "This agreement enhances American's short-term financial flexibility. During 1992, American reduced its total debt outstanding by over $25 million and further debt reduction remains an important objective for this year. To achieve this objective, American is implementing steps to further reduce costs and is
considering the sale of selected properties. American also intends to manage its portfolio of assets with a view toward focusing a higher percentage of its capital budget on high impact development projects and deferring certain discretionary projects until additional capital is available."
 American Exploration Company is an independent company with oil and gas production in the United States and Canada and exploratory activities focused in Texas, Louisiana, Tunisia and the Sultanate of Oman. American's common stock is traded on the American Stock Exchange under the symbol AX.
 -0- 2/19/93
 /CONTACT: Frank Murphy, vice president-investor relations of American Exploration, 212-230-0344/
 (AX)


CO: American Exploration Company ST: Texas IN: OIL SU:

GK-SM -- NY039 -- 8431 02/19/93 13:47 EST
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Publication:PR Newswire
Date:Feb 19, 1993
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