Snyder Oil Updates Status of Gulf of Mexico and North Louisiana Drilling

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Snyder Oil Updates Status of Gulf of Mexico and North Louisiana Drilling
    FORT WORTH, Texas, Jan. 6 /PRNewswire/ -- Snyder Oil Corporation ("SOCO")
(NYSE: SNY) today updated the status of certain wells being drilled in the
Gulf of Mexico and North Louisiana.

    Gulf of Mexico Flex Trend Program -
    The Katmai prospect, located in Green Canyon block 179, was drilled
through the primary objective to a total depth of 12,200 feet and was
determined to be non-productive.  SOCO and Texaco, the other working interest
owner in the well, have decided to plug and abandon the well, as the deeper
second objective would not be sufficient to support a subsea completion on a
stand-alone basis.  The Company will record a dry hole expense of
approximately $8 million in the fourth quarter associated with this well.
    Firebird, the final prospect in the Texaco Flex Trend drilling program,
located in Mississippi Canyon blocks 705 and 661, will most likely be drilled
the latter part of 1999 or early 2000.  The Company's success rate now stands
at 43 percent for the first seven tests in its Flex Trend program.

    North Louisiana Pinnacle Reef Tests -
    Sidetracking operations in the Bozeman No. 1, in Winn Parish, have been
successful with the new hole having been drilled and pipe set to a depth of
16,200 feet.  The new well bore is approximately 350 feet northwest of the
original well bore, which due to mechanical problems was abandoned prior to
testing.  As with the original well bore, all indications from well logs, core
samples and gas shows indicate the probability of a gas discovery, subject to
actual testing to prove or disprove productivity of this complex rock
formation.  The new well bore also appears to be closer to the reef core, with
net thickness of potential reservoir quality rock as much as 100 percent
greater than the original well bore.  The sidetrack penetrated approximately
800 feet of Troy Limestone, including 500 feet of reef and an additional
300 feet of reef debris. Barring mechanical delays, testing is expected to be
carried out and results announced in three to six weeks.  The Company owns
100 percent of the Bozeman No. 1.
    A second pinnacle reef test, the Frazier No. 1, located five miles
southwest of the Bozeman No. 1 is currently drilling below 5,000 feet.  SOCO
is the operator and owns a 33-1/3 percent working interest.  Other working
interest owners are Cox and Perkins Exploration, Inc. and Seitel, Inc.,
through its wholly-owned subsidiary, DDD Energy, Inc., each with one-third
interest in this well.

    Gulf of Mexico Main Pass Development Program -
    The Main Pass 259 A-10 Sidetrack No. 1 has reached a total measured depth
of 13,360 feet and logged 41 net feet of new gas pay in the "10,000 foot sand"
in a northern fault block within the Pabst Field.  The 10,000 foot sand is
currently productive in four wells in the downthrown southern fault block.
Based on the results of comparable wells, initial production is projected to
range from 10,000 to 15,000 Mcf per day.  The Company has a 37 percent net
revenue interest in this well and expects sales to commence by late January
1999.
    SOCO is engaged in the production, development, acquisition, and
exploration of domestic oil and gas properties, primarily in the Gulf of
Mexico, the Rocky Mountains and northern Louisiana.  The Company also has
investments in two international exploration and production companies, SOCO
International plc and Cairn Energy plc.  The Company's shares are traded on
the New York Stock Exchange under the symbol "SNY".  The Company's news
releases and other information about the Company can be found on the Internet
at http://www.snyderoil.com.

    This release contains certain forward-looking statements which are based
on assumptions which the Company believes are reasonable, but which are
subject to a wide range of uncertainties and business risks.  Factors that
could cause actual results to differ materially from those anticipated are
discussed in the Company's periodic filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended
December 31, 1997.
SOURCE Snyder Oil Corporation
http://www.snyderoil.com
Company News On-Call:
http://www.prnewswire.com/comp/118962.html or fax,
800-758-5804, ext. 118962
CONTACT:
Rodney L. Waller of Snyder Oil Corporation,
817-882-5937