Acquires 10.8 Bcf of Offshore Gulf Coast Reserves
                        from Hall-Houston Oil Company

    EDISON, NJ., Jan. 27 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today
announced it has entered into the latest in a series of volumetric production
payment (VPP) transactions with Hall-Houston Oil Company (HHOC) of Houston,
Texas.  Under the terms of the agreement, KCS acquired 10.8 billion cubic feet
(Bcf) of proved natural gas reserves scheduled to be produced and delivered
during the 1998-2000 period.  KCS' priority natural gas deliveries will come
from offshore properties of HHOC in the Gulf of Mexico, all without burden of
lease operating expenses.
    KCS President and Chief Executive Officer James W. Christmas said, "We are
pleased to get our 1998 VPP program off to a fast start.  Deliveries scheduled
for 1998 under the VPP program are more than double the nearly 12.5 Bcfe
deliveries received during 1997.  These VPP increases alone could translate
into growth of 25% in company-wide production in 1998 compared to 1997.
Additionally, we are pleased to continue our relationship with HHOC to
successfully develop their oil and gas properties."
    KCS is an independent energy company engaged in the acquisition,
exploration, development and production of natural gas and crude oil with
operations in the Rocky Mountains, Mid-Continent and Gulf Coast regions.  The
Company also owns oil and gas property interests in the Gulf of Mexico and
Michigan's Niagaran Reef trend.
    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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