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, June 16, 1999 - Texoil, Inc. (NASDAQ: TXLI and Boston: TXL) announced that it will immediately undertake a series of actions to effect a 1-for-6 reverse stock split of its common stock. The reverse split will become effective June 25, 1999, for shareholders of record as of June 15, 1999. The reverse split will result in outstanding stock being reduced to approximately 6.7 million shares, net of resulting odd lots, which will be redeemed or canceled.

As a result of these actions, and because the company received an exception letter from NASDAQ dated June 16, 1999, Texoil expects to continue to be listed on the NASDAQ Small Cap Market. Management believes the exception was granted based on Texoil's growth and performance and its commitment to implement a reverse stock split to ensure long-term compliance with listing requirements.

Management Comments
Frank A. Lodzinski, Texoil's chief executive officer, stated, "We have been in close communication with NASDAQ and have elected to implement the 1-for-6 reverse split, retain our listing and position the company for long-term compliance. The favorable NASDAQ response has removed uncertainties. Texoil has contemplated this action for sometime, but was reluctant to effect a reverse split while the energy market was depressed by low prices. We believe the current timing is appropriate, particularly considering the company's growth and favorable performance (more)Texoil Reverse Split - Add 1during 1998 and the first quarter of 1999."

"Texoil reported increased cash flow and earnings in the first quarter (with average oil prices of only $11.09 per barrel) and expects even better second quarter financial results. Based on preliminary second quarter activity, annualized cash flow could increase to more than $9.0 million," Lodzinski continued. "Furthermore, the company is implementing certain drilling and development programs intended to further increase production, cash flow and earnings. Actual results may vary from projections if industry conditions or pricing structures change. Texoil"s growth, realized price improvements, and development activities have favorably positioned the Company in comparison to its peers. We believe modification to our capital structure, resulting from the reverse split, will enable us to maintain long-term compliance with all of NASDAQ's listing requirements and will more readily facilitate comparison of our performance with that of our peers."

Texoil, Inc. (www.texoil.com) an independent energy company, acquires and develops oil and gas reserves through an active and diversified program that includes purchases of reserves, re-engineering, development and exploration activities, currently focused in Texas, South Louisiana and the Texas Gulf Coast. On December 31, 1997, the company acquired Cliffwood Oil & Gas Corp.; the merger resulted in a change of management and business strategy and substantially increased Texoil's financial resources.

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 company's goals will be achieved.

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