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MCFARLAND ENERGY EXTENDS AND EXPANDS ITS CRUDE OIL PRICE HEDGE AGREEMENT

 SANTA FE SPRINGS, Calif., Dec. 7 /PRNewswire/ -- McFarland Energy Co. has expanded and extended its crude oil price hedge agreement with a local California refiner through November 1994. The agreement's $11.50 per barrel "floor price" for McFarland's Midway Sunset heavy crude oil is approximately $3.00 higher than current California field postings.
 Under terms of the agreement, the company has hedged 2,000 barrels per day of its California heavy oil production for one year, effective Dec. 1, 1993. This quantity represents most of McFarland's heavy oil production and approximately two-thirds of its total anticipated oil production.
 J.C. "Mac" McFarland, chairman and chief executive officer, commented, "Our expanded California crude oil hedging program is an important part of our strategy and provides us with an important level of protection in the current difficult market. The hedge locks in an acceptable minimum field profit margin of $6.00 per barrel on 2,000 barrels of heavy oil production, assuring us of a predictable cash flow to meet the capital requirements of our exploration and development programs."
 McFarland Energy Inc. (NASDAQ: MCFE) is an independent oil and gas exploration and production company headquartered in Santa Fe Springs. Its stock is listed on NASDAQ's National Market System.
 -0- 12/7/93 R
 /CONTACT: J.C. "Mac" McFarland or Ron Yoshihara of McFarland Energy, 310-944-0181/
 (MCFE)


CO: McFarland Energy Inc.; McFarland Energy Co. ST: California IN: OIL SU: CON

NY-JL -- LA007R -- 1301 12/07/93 12:56 EST
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Publication:PR Newswire
Date:Dec 7, 1993
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