TEXOIL, INC. NEWS RELEASE	FOR IMEDIATE RELEASE
COMPANY CONTACT Frank A. Lodzinski President	110 Cypress Station Drive       Suite No. 220       Houston, Texas 77090       (281) 537-9920       (281) 537-8324 - Fax

HOUSTON, TEXAS, March 18, 1999 - Texoil, Inc., (NASDAQ: ÒTXLIÓ) released today a corporate update intended to inform shareholders and other interested parties of the corporate status, achievements, goals and projections.

A New Company With New Management
The Company believes that some shareholders and many potential investors are not aware of certain events and transactions that have significantly changed the Company. In particular, a reverse merger with Cliffwood Oil & Gas Corp., occurred on December 31, 1997. The transaction recapitalized the Company and resulted in a comprehensive change of management and the Board of Directors. In addition, the new management team (being founders and management of Cliffwood) modified the business strategy of the Company to a diverse and growth oriented strategy, incorporating a combination of acquisitions, re-engineering, development and exploration. The old Texoil was primarily an exploration company. Due to the change in control, the reverse acquisition was accounted for as an acquisition of Texoil by Cliffwood. Accordingly, historical results shown in financial statements and news releases represent CliffwoodÕs activities, with TexoilÕs net assets accounted for as an acquisition on December 31, 1997.

Brief History - Rapid Growth
Cliffwood, now a wholly-owned subsidiary, was founded in February 1996 by Frank A. Lodzinski, Jerry M. Crews, Francis M. Mury and Peggy C. Simpson. Mr. Lodzinski serves as Chief Executive Officer and the others serve in senior management positions. In less than two years from CliffwoodÕs commencement of operations to the date of the merger, Cliffwood acquired and developed proved reserves totaling 4.7 million Bbls of oil and 11.6 Bcf of natural gas and went from essentially a start-up corporation to 1997 revenues of $7.1 million and EBITDA of $2.6 million. In one year since the merger, the Company has continued its rapid growth and as of December 31, 1998, is reporting significant increases to reserves, revenues and cash flows. Reserves climbed to 9.2 million barrels of oil and 37.6 Bcf of natural gas. Revenues and cash flows increased in 1998 to $10.4 million and $3.1 million, respectively.

1998 Accomplishments
In spite of depressed industry conditions, the Company has continued its growth and exceeded its goals for 1998. Accomplishments are summarized below:

1998 Reserves
As mentioned above, reserves grew to 9.2 million Bbls and 37.6 Bcf as of December 31, 1998, with a discounted present value at 10% (ÒPV10"), using SEC prescribed methods, of $46.2 million, based on evaluations of the CompanyÕs independent engineers. The average price used in these calculations was $9.51 per Bbl and $2.05 per Mcf. Reserve values increase substantially with price increases. For example, using oil prices beginning in 1999, of $12.50, $14.00, $16.50 and $18.00 held flat thereafter, the PV 10% increases to more than $80 million.

No Year-End Writedown; Low Finding Costs
Texoil believes it is one of only a few small cap oil and gas companies that is not required to incur a writedown (impairment) of properties at December 31, 1998. Management believes this is a direct result of the quality of TexoilÕs properties, the CompanyÕs technical and operating capability, favorable acquisition costs, development activities and certain divestitures (which were sold at a profit, therefore, lowered net acquisition costs) and development activities. The Company calculates an overall finding cost through December 31, 1998, of less than $3.80 per barrel of oil equivalent (ÒBOEÓ). This represents a three year average.

Business Strategy
The Company believes diversified activities including acquisitions, re-engineering of fields, development and exploration is a preferable strategy to only exploration activities, particularly in the industry environment which has developed (with declining prices) in 1998 and 1999. Such a strategy, management believes, is conducive to growth and share appreciation and further provides significant upside potential with exploratory success.

Management Forecasts Additional 1999 Growth
Management believes the Company will continue its growth pace in 1999, despite the poor industry environment. Texoil is a well managed and financially capable company which will compete aggressively for acquisitions and capital. The management team and technical staff is experienced and has successful prior track records. Management believes the acquisitions market for both proved and exploratory assets will remain active and acquisitions will be available at attractive prices. Management and technical personnel have a large contact base and deal flow.

1999 Goals
The Company expects to continue to deploy its basic strategy in 1999, but will shift its focus even more toward acquisitions (and mergers), particularly those which have current cash flow and exploitation and exploration potential. The Company's 1999 goals are as follows:

1999 Production Estimates - A Record High
Based on preliminary indications, Texoil expects the first quarter of 1999 to result in record high production levels. In addition, revenues and cash flows are projected to exceed the fourth quarter of 1998. First quarter production is estimated to surpass the fourth quarter1998, by 10 - 15%. Based solely on acquisitions and development to date, the Company is projecting 1999 production to exceed 1998 by 165%.

Exploration and Drilling
The Company expects to drill at least six to eight wells in 1999 resulting from its internal generation of prospects and a Joint Venture with Bechtel Exploration Company. In addition, the Company expects to drill its significant Raceland and Greens Lake prospects this year. Since the Merger, Texoil has developed numerous prospects in its major prospect areas and Joint Venture. At Raceland, Texoil has increased its ownership from 30% to 83% by acquiring interests from certain owners who have withdrawn from exploration activities or have substantially curtailed budgets. Similarly, the Company is negotiating to increase its interest in the Greens Lake prospect from 30% to over 50% and take over operations. Increased interests at Greens Lake with operating rthe Company is negotiating to increase its interest in the Greens Lake prospect from 30% to over 50% and take over operations. Increased interests at Greens Lake with operating responsibility will allow Texoil to solicit partners on a promoted basis and accelerate drilling activities.

Four exploratory wells have been drilled resulting in two gas wells, one oil well and one dry hole. Numerous additional prospects are expected to be generated internally or through the Joint Venture.

Company Contacts
Shareholders and interested parties are invited to contact management. Please contact Messrs. Frank A. Lodzinski, Jerry M. Crews or Ralph D. Hollingshead. Management will provide additional corporate information upon request.

This release may contain forward-looking statements within the meaning of Section 27A of The Securities Act of 1933 and Section 21E of The Securities Act of 1934. Texoil believes that its expectations are based on reasonable business assumptions, however, no assurance can be given that the CompanyÕs goals will be achieved.

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