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MCFARLAND ENERGY REPORTS OPERATING RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 1993

 SANTA FE SPRINGS, Calif., Aug. 17 /PRNewswire/ -- McFarland Energy Inc. (NASDAQ-NMS: MCFE) earned a modest profit in the second quarter ended June 30, 1993. Net income for the first six months of the year, which benefited from a gain of $450,000 attributable to the cumulative effect of an accounting change, was substantially higher than in the prior year.
 For the three months ended June 30, 1993, net income was $40,000, equal to 1 cent per share, compared with $535,000, or 10 cents per share a year ago. Second quarter revenues were $3,482,000, compared with $3,950,000 in the prior year.
 Net income for the year's first six months totaled $568,000, equal to 11 cents per share, including the cumulative effect of the company's implementation of SFAS No. 109 ("Accounting for Income Taxes") as of Jan. 1, 1993 which totaled $450,000, or 9 cents per share. Net income in the first half of 1992 was $304,000, or 6 cents per share. First half revenues totaled $6,753,000, compared with $7,414,000 one year earlier.
 J.C. "Mac" McFarland, chairman and chief executive officer, commented: "Quarterly results reflected a 10 percent decrease in oil and gas revenues due to lower current year production. Much of the decrease was attributable to marginally economic properties sold in the second half of 1992. Also, exploration expenses for the quarter were more than $100,000 higher than in the prior year. In addition, we should note that the second quarter of 1992 was a particularly strong period for McFarland Energy.
 "The company continues the active pursuit of its three-pronged strategy for long-term growth. First, we continue to drill for natural gas in a relatively unexplored area of the northern San Joaquin Valley. While our two exploratory tests in the first half were dry, we remain confident of the area's potential. Last year the exploration program in this area resulted in four successful exploratory wells (and no dry holes) with estimated proved developed natural gas reserves of 3.1 billion cubic feet, net to the company. We plan to drill several additional wells in the second half of 1993.
 "The company's Ten Section Gas Storage Project remains the focus of intense activity. The California Public Utilities Commission's favorable ruling on gas storage earlier this year provides our project with a level playing field and paves the way for Ten Section's commercialization. Our marketing efforts are in full swing, and discussions are going forward with prospective joint venture partners.
 "The third phase of our program is the ongoing producing property acquisition effort. The market for high quality properties is very competitive; thus we have not yet been successful in consummating an acquisition. Nevertheless, our teams continue to evaluate and pursue potential acquisitions and prospects."
 McFarland concluded: "We're enthusiastic about our opportunities and the potential that we see to build, over time, a larger, stronger, more successful company. Our financial base is solid, and we have a young, talented management team that is dedicated to the pursuit of growth."
 McFarland Energy Inc. 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.
 MCFARLAND ENERGY INC.
 Financial Results
 (Unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenues $3,482,000 $3,950,000 $6,753,000 $7,414,000
 Income before
 income taxes $57,000 $819,000 $160,000 $470,000
 Income before
 accounting
 change 40,000 535,000 118,000 304,000
 Cumulative effect(a)
 of accounting
 change --- --- 450,000 ---
 Net income $40,000 $535,000 $568,000 $304,000
 Income per share
 before
 accounting change $0.01 $0.10 $0.02 $0.06
 Cumulative effect(a)
 of accounting
 change --- --- 0.09 ---
 Net income
 per share $0.01 $0.10 $0.11 $0.06
 Weighted average
 shares 5,199,359 5,199,359 5,199,359 5,199,359
 (a) Effective Jan. 1, 1993, the company implemented (SFAS) 109, "Accounting for Income Taxes."
 -0- 8/17/93
 /CONTACT: J.C. "Mac" McFarland, chairman and CEO, or Ron Yoshihara, 310-944-0181, both of McFarland Energy/
 (MCFE)


CO: McFarland Energy Inc. ST: California IN: OIL SU: ERN

MF-LM -- LA032 -- 3688 08/17/93 15:59 EDT
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Date:Aug 17, 1993
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