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AMERICAN EXPLORATION COMPANY REPORTS SECOND QUARTER RESULTS

 HOUSTON, Aug. 10 /PRNewswire/ -- American Exploration Company (AMEX: AX) today announced net income of $933,000 ($0.01 per share) for the quarter ended June 30, 1993, compared with a net loss of $5.2 million ($0.08 per share) for the second quarter of 1992. Operating cash flow before changes in working capital increased to $14.2 million for the second quarter of 1993 from $3.2 million for the same period in 1992.
 For the first six months of 1993, the Company reported a net loss of $2.2 million ($0.03 per share) compared with a net loss of $9.5 million ($0.16 per share) for the same period last year. Operating cash flow before changes in working capital for the first half of 1993 was $18.2 million as compared with $6.3 million for the year earlier period.
 Results for the second quarter of 1993 include the nonrecurring effect of a $9.9 million gas contract settlement offset by $6.6 million of noncash charges relating primarily to the sale of the Company's Canadian oil and gas assets.
 Commenting on these results, Mark Andrews, Chairman and CEO, said, "In addition to improved operating results, the Company has reduced debt levels significantly. American has utilized the proceeds from gas contract settlements and sale of assets in June and July to reduce bank debt on an interim basis to $18 million from $58 million at March 31, 1993. At the same time, total debt has been reduced to a current level of $77 million from $133 million at March 31, 1993.
 "Having placed American on much sounder financial footing, management's focus has now shifted to pursuing growth projects in core operating areas. Although in the second half of this year the Company will participate in two international wells to fulfill prior commitments, future capital spending will be concentrated on lower risk domestic exploration and development projects that offer the potential for high rates of return as well as significant reserve additions. The initial results of this strategy are encouraging and a number of projects are underway or planned for the second half of 1993."
 American Exploration Company is an independent oil and gas production and exploration company with operations concentrated primarily in the Gulf Coast, West Texas and Midcontinent areas of the United States. The Company also holds interests in large exploration permits in Tunisia, Oman and Australia. American's common stock is traded on the American Stock Exchange under the symbol AX.
 AMERICAN EXPLORATION COMPANY AND SUBSIDIARIES
 Summarized Statements of Operations
 (In thousands, except per share amounts)
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 Revenues:
 Oil and gas sales $14,096 $14,641 $28,121 $29,218
 Gas settlement income 9,836 75 9,918 748
 Loss on sales of oil and
 gas properties (6,626) (1,151) (6,865) (857)
 Other revenues (costs),
 net (193) 321 (47) 587
 Total revenues 17,113 13,886 31,127 29,696
 Costs and expenses:
 Production and operating 3,716 4,731 7,614 9,147
 Depreciation, depletion
 and amortization 5,811 6,938 12,057 13,976
 General and administrative 2,039 2,717 4,435 5,897
 Taxes other than income 1,180 1,495 2,427 3,017
 Exploration 770 1,015 2,183 2,437
 Impairment 465 73 527 177
 Total costs and expenses 13,981 16,969 29,243 34,651
 Income (loss) from
 operations 3,132 (3,083) 1,884 (4,955)
 Interest expense and other
 income, net (2,170) (2,624) (4,064) (5,231)
 Minority interest in
 subsidiary (29) 474 (7) 666
 Net income (loss) $933 $(5,233) $(2,187) $(9,520)
 Net income (loss)
 per common share:
 Primary and full diluted $.01 $(.08) $(.03) $(.16)
 Number of common and
 equivalent shares:
 Primary and fully diluted 69,417 62,996 69,417 59,620
 Operating Cash Flows
 (in thousands - unaudited)
 Before changes in working
 capital $14,162 $3,236 $18,169 $6,287
 After changes in working
 capital 10,970 (400) 13,441 1,519
 Oil and Gas Price and
 Production Data
 Domestic oil production
 (MBbls) 304 355 604 705
 Average price per Bbl $17.57 $19.20 $17.70 $18.04
 Domestic gas production
 (MMcf) 2,923 3,352 5,904 7,158
 Average price per Mcf $2.14 $1.68 $2.06 $1.66
 Canadian oil production
 (MBbls) 35 55 71 110
 Average price per Bbl $13.57 $14.61 $12.79 $12.88
 Canadian gas production
 (MMcf) 1,699 1,707 3,542 3,353
 Average price per Mcf $1.19 $.81 $1.23 $.95
 -0- 8/10/93
 /CONTACT: Frank Murphy of American Exploration, 212-230-0344/
 (AX)


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

SM-LG -- NY025 -- 1140 08/10/93 11:00 EDT
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Date:Aug 10, 1993
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