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MCFARLAND ENERGY REPORTS OPERATING RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 1993

 SANTA FE SPRINGS, Calif., Nov. 15 /PRNewswire/ -- McFarland Energy Inc. (NASDAQ-NMS: MCFE) experienced a small loss in the third quarter ended Sept. 30, 1993, reflecting significantly lower crude oil prices in the current quarter.
 For the three months ended Sept. 30, 1993, the net loss was $177,000, equal to 3 cents per share, compared with net income of $526,000, or 10 cents per share, a year ago. Revenues in the third quarter were $3,185,000, compared with $3,959,000 in the corresponding quarter of 1992.
 For the first nine months of 1993, the company reported net income of $391,000, equal to 8 cents per share, reflecting 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. Revenues for the period were $9,938,000, vs. $11,373,000 in the prior year.
 J.C. "Mac" McFarland, chairman and chief executive officer, commented: "Both California and Gulf Coast crude oil prices have been especially weak since the end of the second quarter. Including the positive effects of the company's hedging program, the average crude price received in the current quarter was $12.79 per barrel, a 21 percent decrease from the $16.25 per barrel received in the same period a year ago.
 "Crude production in the third quarter was unchanged at 204,000 barrels from the prior-year level, after adjusting for production from marginal properties sold in late 1992. Total production costs were 4 percent lower than the prior year. However, exploration costs, and general and administrative expenses were significantly higher."
 McFarland added: "The company is actively pursuing its growth programs including continuing exploration in the Northern San Joaquin Valley where we've had five successful wells of 10 drilled, the development of the Ten Section Gas Storage project and the search for property acquisitions. We're making progress in all these areas.
 "With respect to the last area, our recently announced planned purchase of the Star Fee property in Section 26 of the Midway Sunset oil field in Kern County, Calif., represents a significant milestone for McFarland Energy. According to the agreement, which is subject to negotiation of final documents, McFarland Energy will pay $16,000,000 for the 100 percent revenue interest in the Star Fee. This acquisition will expand the company's reserves by over 50 percent and will favorably impact long-term revenue, operating cash flow and earnings."
 McFarland Energy Inc. is an independent oil and gas exploration and production company headquartered in Santa Fe Springs with operations in California and the Gulf Coast. Its stock is listed on NASDAQ's National Market System.
 MCFARLAND ENERGY INC.
 Financial Results
 (Unaudited)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Revenues $3,185,000 $3,959,000 $9,938,000 $11,373,000
 (Loss) income
 before income
 taxes ($219,000) $788,000 ($59,000) $1,258,000
 (Loss) income
 before accounting
 change (177,000) 526,000 (59,000) 830,000
 Cumulative
 effect(a) of
 accounting change --- --- 450,000 ---
 Net (loss)
 income ($177,000) $526,000 $391,000 $830,000
 (Loss) income
 per share before
 accounting change ($0.03) $0.10 ($0.01) $0.16
 Cumulative
 effect(a) of
 accounting change --- --- 0.09 ---
 Net (loss) income
 per share ($0.03) $0.10 $0.08 $0.16
 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- 11/15/93
 /CONTACT: J.C. "Mac" McFarland or Ron Yoshihara of McFarland Energy, 310-944-0181/
 (MCFE)


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

JL -- LA033 -- 4565 11/15/93 14:54 EST
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Date:Nov 15, 1993
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