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, July 2, 1999 - Texoil, Inc., (NASDAQ Small Cap: "TXLID", Boston Stock Exchange "TXL") Chairman and Chief Executive Officer Frank A. Lodzinski today stated that the company knows of no reason for the volatility of its current stock price, nor the wide spread between the posted bid and ask price. The company implemented a 1-for-6 reverse stock split on June 25, 1999, to modify its capital structure, retain its NASDAQ listing and position the company for improved recognition in the marketplace. Since its December 31, 1997 merger with Cliffwood Oil & Gas Corp., which resulted in a comprehensive change in management, Texoil has grown from a 1997 EBITDDA of approximately $2.6 million to an estimated 1999 EBITDDA of approximately $8.3 million.

Lodzinski further stated, "We continue to enjoy excellent operating results in all of our producing areas. We anticipate increased revenues, cash flows and earnings for the second quarter of 1999, resulting from realized price increases, operational improvements and development activities. Second quarter and year-to-date results of operations should significantly exceed comparative prior year periods. Production should exceed 610,000 barrels of oil equivalent ("BOE") for the six months ended June 30, 1999, up 98% from the prior year. In addition, higher average oil prices will have a further positive impact on revenues and cash flows. Reserves, as of June 30, 1999, are estimated at 11.3 million barrels of oil and 40.1 BCF of gas (17.9 million BOE) with a pre-tax discounted present value (SEC PV 10%) of $81.9 million using average June 1999 realized prices. Accordingly, based on net asset values and cash flows, the company believes its stock is trading well below reasonable valuations. Based on current pricing and production levels, the company forecasts EBITDDA of more than $8.3 million for 1999, or $1.23 per share. We realize, of course, that there are factors beyond our control that could cause actual results to be different from our forecasts. With both increased cash flows and increased bank availability, we are accelerating our capital development program. The company has emerged the low oil price environment successfully and is positioned to benefit from new opportunities to develop and operate reserves with lower costs and greater profit potential. We strongly believe our programs will provide for sustained growth."

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 TexoilÕs financial resources.

This material includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections or other statements other than statements of historical fact, are forward-looking statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the company's business are set forth in the filings of the company with the Securities and Exchange Commission.

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