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SEAGULL ENERGY CORPORATION ANNOUNCES COMPLETION OF PURCHASE OF OUTSTANDING COMMON STOCK

 HOUSTON, Dec. 31 /PRNewswire/ -- Seagull Energy Corporation (NYSE: SGO) announced today that it has completed its purchase of the outstanding common stock of Arkla Exploration Company.
 Seagull acquired the subsidiary of Arkla, Inc. (NYSE:ALG) for a cash purchase price of approximately $397 million, effective Sept. 1, 1992, and subject to customary post-closing adjustments. As a part of Seagull, the former Arkla entity will be called Seagull Mid-South Inc.
 The Mid-South assets consist almost exclusively of natural gas and oil reserves and developed and undeveloped lease acreage. Seagull estimates that, as of the effective date, it acquired approximately 585 billion cubic feet of proved natural gas reserves and about 7.3 million barrels of proved crude oil, condensate and natural gas liquids reserves.
 Seagull will manage its new Mid-South operation from offices in Shreveport manned by a majority of Arkla Exploration's former employees.
 To close the transaction, Seagull accepted commitments for a new credit facility from a group of major U.S. banks. The new facility, which replaced a $225 million revolving line of credit, consists of a $475 million revolver and a three-year, $150 million term loan.
 On Dec. 4, 1992, Seagull filed a registration statement with the Securities and Exchange Commission to offer four million shares of its common stock. Proceeds from the proposed offering will be used to reduce the $150 million term loan.
 The registration statement has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification of the shares of common stock under the securities laws of any such state.
 Copies of the preliminary prospectus will soon be available from the company at 1700 First City Tower, 1001 Fannin Street, Houston, TX 77002, Attention: Investor Relations.
 -0- 12/31/92
 /CONTACT: Alan Payne of Seagull Energy Corporation, 713-951-4700/
 (SGO ALG)


CO: Seagull Energy Corporation; Arkla, Inc. ST: Texas IN: OIL SU:

TM -- NY018 -- 0898 12/31/92 12:06 EST
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Publication:PR Newswire
Date:Dec 31, 1992
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