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AMERICAN EXPLORATION COMPANY ANNOUNCES SOUTH TEXAS GAS DISCOVERY AND SEISMIC JOINT VENTURE

 HOUSTON, Oct. 2 /PRNewswire/ -- American Exploration Company (AMEX: AX) today announced that a new field natural gas discovery in Wharton County, Texas which has been placed onto production at a rate of 2.9 million cubic feet of gas and 220 barrels of condensate per day. The company also announced the formation of a seismic joint venture to develop additional prospects in the area of the discovery.
 The Talon Development Company-Patos No. 1 well encountered productive Yegua Sand between depths of 7,612 and 7,632 feet. Production is through a 15/64 inch choke with flowing tubing pressure of
3,150 pounds per square inch. Further development of the 980 acre leasehold is expected. American Exploration holds a 15 percent working interest in the well and surrounding acreage, which is operated by Talon Development Company.
 In addition to the discovery, American announced that it had entered into an agreement to provide WestHall Associates, Inc. access to American's seismic database in the Yegua Trend surrounding the discovery well. In exchange, American has the option to participate for up to a 37.5 percent working interest, on an unpromoted basis, in exploration prospects identified by WestHall. American has approximately 3,800 miles of seismic data in the areas covered under this agreement.
 "This gas discovery and the seismic joint venture are further indications that the steps taken by American over the past year to strengthen its operating team are working," said Mark Andrews, chairman and CEO. Commenting further, Mr. Andrews said, "American has focused its activities in Texas and along the Gulf Coast. We are developing and exploiting our existing property and asset base and pursuing new opportunities in these areas which can have a substantial impact on cash flow and profitability.
 "So far in 1993, the initial efforts of our new operating management team have succeeded in stabilizing American's domestic production volumes. American is now involved in an active development drilling program which is expected to increase domestic production volumes. American has also drilled three domestic exploratory wells in 1993, including the Patos No. 1, resulting in three successful gas completions. Additional exploration wells are currently drilling or planned for the fourth quarter."
 American Exploration Company is an independent oil and gas company with exploration and production activities located primarily in Texas, Louisiana and Oklahoma and interests in large exploratory permits in Tunisia and the Sultanate of Oman. American's common stock is traded on the American Stock Exchange under the symbol AX.
 -0- 10/1/93
 /CONTACT: Frank Murphy of American Exploration Company, 713-756-6269, or James Bartlett of Coltrin & Associates, 713-759-6052/
 (AX)


CO: American Exploration Company ST: Texas, Louisiana, Oklahoma IN: OIL SU: DSC

WB -- NY017 -- 8218 10/04/93 09:42 EDT
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Publication:PR Newswire
Date:Oct 4, 1993
Words:453
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