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GARNET ANNOUNCES OIL DISCOVERY AND DELINEATION, INCREASE IN RESERVES IN COLOMBIA

 HOUSTON, Feb. 16 /PRNewswire/ -- Garnet Resources Corporation (NASDAQ: GARN) announced results of tests on its Mary No. 2 well in the Putumayo region of Colombia. The well is oil productive from four zones, with a total expected production capacity of 5,300 to 5,500 barrels of oil per day, although the company said that further review will be required to determine the zones to be commingled for initial production. Three of the zones are new discoveries and the fourth is a delineation from its Mary No. 1 discovery well located one-half mile east. Garnet also reported on its 1992 oil production and year end reserves.
 The Mary No. 2 well was tested only on flow rates and swab rates, which Garnet and its independent engineering consultants have extrapolated to expected pumping production rates for each zone. The extrapolations are based on reservoir data, comprehensive testing and production rates on previous wells. The company said it has requested government approval for extended production tests over three to six months. If approved, the oil would be transported by truck and ferry across the Caqueta River to the existing pipeline system, providing cash flow as well as additional reservoir data.
 In the Villeta "U" sand, the Mary No. 2 is a delineation well one- half mile west of its Mary No. 1 discovery. Based on a flow rate of 763 barrels of 29.4 degree API gravity oil per day, the No. 2 well is expected to produce 2,500 barrels per day from this zone at 7,469-7,520 feet, compared to 1,700 barrels per day tested on pump from the "U" sand in the No. 1 well.
 The Caballos sand, at 7,767-7,796 feet, represents a new discovery in the Mary field, and swabbed and flowed 27.4 degree gravity oil at 145 barrels per day, indicating an expected production rate of 300 to 500 barrels of oil per day. The closest Caballos production to this Mary No. 2 discovery is 5-1/2 miles to the south.
 The Villeta "T" sand, another new discovery zone, swabbed and flowed 27.4 degree gravity oil and water from perforations at 7,647-7,716 feet at rates of 175 to 420 barrels per day. Production on pump is expected to be 1,000 barrels of oil per day with 500 barrels per day of water. Closest "T" sand production was tested in a well 4 miles north of Mary No. 2.
 The fourth zone, the Upper "U" sand, is also a new discovery zone. From perforations at 7,404-7,418 feet, it flowed 553 barrels per day of 28.7 degree API oil. This sand is expected to produce 1,500 barrels of oil per day on pump. The nearest production from the Upper "U" sand is 23 miles south of Mary No. 2.
 Garnet also reported that its year and net proved reserves, as determined by its outside independent engineers, were 5.5 million barrels of oil, a 21 percent increase from the prior year. One third of Garnet's proved reserves are developed, with two thirds remaining undeveloped. In April 1992, two of its oil fields were placed on production in Colombia, and gross production totalled 714,000 barrels (150,000 net to Garnet) for the nine month period through year end.
 Garnet is engaged primarily in international oil and gas exploration activities. Its exploration and production operations in Colombia are conducted through its subsidiary Argosy Energy International.
 -0- 2/16/93
 /CONTACT: Albert E. Whitehead, chairman, 918-587-8093, or George M. Nevers, president, 713-759-1692, both of Garnet Resources Corporation/
 (GARN)


CO: Garnet Resources Corporation ST: Texas IN: OIL SU: DSC

AH-OS -- NY035 -- 6807 02/16/93 10:36 EST
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Date:Feb 16, 1993
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