HOUSTON, May 18 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today
announced that the Company has entered into forbearance agreements on each of
its revolving bank credit agreements, which provide that the lenders will
defer redetermination of the borrowing base until July 1, 1999 and will
refrain from exercising their rights and remedies as a result of the existing
defaults until June 30, 1999.  Under the forbearance agreements, the Company
will commit 50% of monthly cash flow to payments of principal, with a minimum
of $2 million monthly.  In addition, a portion of the proceeds from the sale
of any of the Company's oil and gas properties will be dedicated to payment of
principal under the facilities.  When the forbearance agreements expire, the
lenders will be able to exercise their rights under the credit agreements,
including declaring the principal balances immediately due and payable.  If
this should occur, the Company would be unable to pay the amount due in cash,
although the Company believes the lenders are fully secured; and the holders
of the Company's senior notes and senior subordinated notes would have the
right to declare the principal amount of the notes ($275 million) immediately
due and payable.  The lenders have indicated their intention following the
termination of the forbearance period to reduce the Company's borrowing base
under the credit agreements.  Such a reduction in excess of principal
repayments made under the forbearance agreements would necessitate additional
repayment of principal, and these payments would have a negative impact on
cash availability.  As a result of these factors, there is substantial doubt
about the Company's ability to continue as a going concern.
    KCS President and Chief Executive Officer James W. Christmas said,
"Although the forbearance agreements are short in duration, they are
supportive of the Company's desire to reduce its outstanding debt in an
orderly fashion and continue to support current drilling activities and
actively pursue new opportunities within our core operating areas."
    KCS is an independent energy company engaged in the acquisition,
exploration, development and production of natural gas and crude oil with
operations in the Mid-Continent, Onshore Gulf Coast, Gulf of Mexico and Rocky
Mountains regions.
    To receive KCS' latest news and other corporate developments via fax at no
cost, please call 1-800-PRO-INFO. Use company code KCS.  See also
http://www.frbinc.com.
    This press release contains forward-looking statements that involve a
number of risks and uncertainties.  Among the important factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are delays and difficulties in developing currently
owned properties, the failure of exploratory drilling to result in commercial
wells, delays due to the limited availability of drilling equipment and
personnel, fluctuations in oil and gas prices, general economic conditions and
the risk factors detailed from time to time in the Company's periodic reports
and registration statements filed with the Securities and Exchange Commission.

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