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 22, 1999 - Texoil, Inc., (NASDAQ: TXLI) released today a corporate update to provide shareholders and other interested parties with interim information related to the company's achievements, goals and projections.

Background
A reverse merger with Cliffwood Oil & Gas Corp., effective December 31, 1997, recapitalized the company and resulted in a comprehensive change of management and the board of directors. The new management team (comprising founders and management of Cliffwood) continues to implement its growth-oriented strategy, incorporating a combination of acquisition, re-engineering, development and exploration activities. The predecessor entity (Cliffwood) was founded in early 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 approximately three years from Cliffwood's commencement of operations through the first quarter of 1999, reserves climbed to 11.0 million barrels of oil and 37.8 Bcf of natural gas (17.3 million barrels of oil equivalent). Revenues and cash flows are presently projected in 1999 to exceed $17.0 million and $8.0 million respectively, exclusive of field development and drilling. In short, Texoil has sustained significant growth as demonstrated by the following compound average annual growth rates (through 1999):

Management Forecasts Additional 1999 Growth
Management believes Texoil will continue its growth pace in 1999. Texoil expects 1999 to result in record high production levels. Based solely on acquisitions and development to date, the company is projecting 1999 production to exceed 1998 by 168%. These estimates do not include potential increases from non-proved reserves or from acquisition and exploration activities. Present projections and a comparison to prior years are as follows:

Reserves
Reserves grew to an estimated 11.0 million bbls and 37.8 Bcf (17.3 million barrels of oil equivalent) as of March 31, 1999, with a discounted present value at 10% (PV10), using SEC prescribed methods, of approximately $71.0 million, based on evaluations of the company's independent engineers. The average price used in these calculations was only $14.90 per bbl and $1.96 per Mcf. Approximately 64% of the reserves are proved developed producing. Reserve values may increase substantially with further price increases.

Increased Borrowing Availability
As part of the annual borrowing base review made by the company's banks, the borrowing base has been increased to $31.0 million from approximately $25.7 million. Management believes the increase is a result of higher prices and Texoil's demonstrated ability to lower operating costs and increase production. No principal payments will be due for more than 12 months. Accordingly, the second quarter report will not show a current portion of long-term debt.

Financing
Management expects to have adequate resources to finance its continuing activities through increased cash flows, increased borrowing capacity, ability to obtain partners on a promoted basis, divestitures of non-core assets and project financing. In addition, management expects to refinance or convert its subordinated debt before year-end. As stated in "Goals" (below), management believes its performance and growth will attract additional capital to further its business strategy.

Reverse Stock Split
As announced in a news release dated June 16, 1999, and an 8-K filed June 21, 1999, Texoil has implemented certain actions designed to reduce the number of outstanding common shares. Specifically, Texoil will immediately undertake a series of actions to effect a net 1-for-6 reverse stock split of its common stock. The reverse split will become effective June 25, 1999. The reverse split will result in outstanding stock being reduced to approximately 6.7 million shares. Fractional shares of less than 1/10th will be redeemed at $0.62 per share. Fractional shares of more than 1/10th will be rounded up so that on the forward split, holders of fractional shares will receive 100 whole shares for any fraction. The record date for fractional shares is June 16, 1999, and the record date for the reverse split is June 25, 1999. Details of the combined 1-for-600 reverse split and 100-for-1 forward split are described in Certificates of Amendment attached as Exhibits to the Form 8-K filing. Texoil anticipates that this reverse split will permit it to continue to be listed on the NASDAQ Small Cap Market, and make Texoil more attractive to prospective merger candidates, investors and analysts. Over the longer-term, management believes the action will result in greater public awareness and market demand.

Texoil Earnings
Texoil is one of only a few small cap oil and gas companies that reported profits in the first quarter of 1999. Similarly, Texoil's financial performance in 1998 compared favorably to its peers. Management believes this is a direct result of the quality of Texoil's properties, the company's technical and operating capability, favorable acquisition costs, development activities and certain divestitures (which were sold at a profit). The company calculates an overall finding cost, through December 31, 1998, of less than $3.37 per barrel of oil equivalent (BOE). Texoil's lifting, G&A and financing costs compare favorably in the industry.

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

Corporate Acquisitions and Mergers
Texoil is in active discussions with certain prospective corporate acquisitions or merger partners. While management cannot predict the successful outcome of current activities, the company is focusing on corporate acquisitions or mergers, where assets and staff are complementary, opportunities to reduce combined costs exist, and the transaction is accretive to share value. These types of activities will continue to be an integral part of the company's strategy.

Exploration and Drilling
The company expects to drill at least four wells in the remainder of 1999 resulting from its development activities and a joint venture with Bechtel Exploration Company. In addition, Texoil expects to drill its significant Greens Lake and Raceland prospects in the first quarter of 2000. Texoil has developed numerous prospects in its major prospect areas and joint venture. The company expects to increase its interest in the Greens Lake prospect from 30% to over 70% and to take over operations. Increased ownership in 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. An exploratory well, the J. R. Bacque #1, has commenced drilling in the Great Scott prospect, Lafayette Parish, Louisiana. Texoil is the operator and will have a 17% interest before well payout and 22% interest after well payout. The company successfully sold interests to industry participants (on a promoted basis) and, accordingly, will pay for only about 9% of the well. The rig is on location and has drilled to a depth of about 6,600 feet as of June 21, 1999. Total proposed depth is 12,200 feet. The well is intended to test the prolific Marg Tex sand, structurally 80-90 feet high to a productive well in an adjacent unit and a strong electric log show within the drilling unit. The prospect is defined by a 3-D seismic, sub-surface geology and engineering control. The prospective well is similar to the Francis Martin #1 well, West Ridge field, Lafayette Parish, Louisiana, which was drilled by Texoil and partners in 1998 and continues to produce at approximately 14 million cubic feet of gas per day and 250 barrels of condensate. Numerous additional prospects are expected to be generated internally or through the joint venture.

Company Contacts
Shareholders and interested parties are invited to contact Frank A. Lodzinski, Jerry M. Crews or Ralph D. Hollingshead. Management will provide additional corporate information upon request.Texoil, Inc., 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 the company's overall 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.

Click here to return to Recent Press Releases