Energen: Other News Release

FOR RELEASE:                  Analyst Contact: Julie S. Ryland, (205) 326-8421
   MONDAY, JUNE 9, 1997       Media Contact: Susan C. Delenne, (205) 326-9212
   

Taurus Exploration Acquires Working Interest in Pinnacle Reef Joint Venture
  
   BIRMINGHAM, Ala. ÄÄ Energen Corporation (NYSE: EGN) announced today that its
oil and gas exploration and production subsidiary, Taurus Exploration Inc., has
joined the Sonat Exploration/United Meridian Corporation joint venture in the
Cotton Valley Pinnacle Reef trend by  acquiring a 9 percent interest in the
joint venture's future exploration activities from Sonat Exploration for $16
million. The transaction closed Monday, June 9.
   Drilling is under way on the joint venture's first well, the Ryon No. 1.
This is the first well to be drilled in the Tri-Cities Area in Henderson
County; if successful, the Ryon No. 1 will extend Cotton Valley Pinnacle Reef
trend gas production some 45 miles to the northeast of current drilling
activity. Located in the east Texas salt basin, this trend presently is the
most active, high-potential onshore exploratory play in the continental United
States.
   Taurus's new joint venture relationship spans a leasehold containing 195,000
gross acres in Henderson County and in Van Zandt, Wood, and Smith counties to
the northeast and in Anderson County to the southeast. Sonat Exploration is the
operator for drilling and development of the venture's acreage as well as the
majority interest owner at 59 percent. Other participants are United Meridian
Corporation with 30 percent and MB Exploration with 2 percent.
   The joint venture's lease acquisition has been based on the presence of
reef-like seismic anomalies on available two-dimensional (2-D) seismic lines.
In all prospective areas, three-dimensional (3-D) seismic surveys will be
obtained to verify and define the existence of drillable exploratory Pinnacle
Reef prospects.
   The joint venture will have completed 3-D seismic acquisition and data
processing on about 70 percent of its leasehold by the end of calendar 1997,
with 3-D seismic data available on the remaining acreage in 1998.
   "The Cotton Valley pinnacle reef trend is arguably the most exciting onshore
exploratory gas play in the United States in recent memory," said James T.
McManus, president of Taurus. "If the Ryon No. 1 is successful, an important
new play in the northern trend would open up.
   "We are very pleased and excited to be entering this high-profile,
high-impact play which represents one of the most successful uses of onshore
3-D seismic."
   "This exploratory opportunity comes at a most opportune time in the
implementation of Energen's aggressive, five-year, diversified
growth strategy," said Mike Warren, Energen's chief executive officer. "With
the addition of approximately 330 Bcf of long-lived, predominantly proved
developed producing reserves through two large acquisitions over the last 10
months, we had announced plans to focus on higher return exploration activities
to promote the proper mix of acquisition, development and exploratory
activities we want in order to realize our target growth objectives.
   "Combined with the previously announced increase in Taurus's interest
position in United Meridian Corporation's Gulf of Mexico exploration program,
this pinnacle reef investment clearly emphasizes our commitment to Energen's
growth strategy for Taurus and our ability to effectively manage its
implementation," Warren said.
   "We also are pleased with this investment because it adds yet another
dimension to our existing relationships with both Sonat Exploration and its
parent company, Sonat Inc., as well as with United Meridian Corporation," he
added.
   Energen's five-year strategic plan, designed to dramatically grow its oil
and gas exploration and production subsidiary, calls for Taurus to invest
between fiscal 1996 and fiscal 2000 more than $400 million in the acquisition
of producing properties with development potential and more than $100
million in exploration and development.
   In the plans first 18 months of plan implementation, Taurus has invested
approximately $200 million in producing properties with development potential,
$10 million in associated development, and $26 million in exploration and
related development, resulting in proved reserve additions of approximately 415
Bcf equivalent (Bcfe). Dramatic increases in oil and gas production have helped
lead Taurus's net income to record levels.
   Energen Corporation is a diversified energy company with headquarters in
Birmingham, Alabama. In addition to oil and gas exploration and production
activities, Energen also distributes natural gas to more than 460,000 customers
in central and north Alabama through its utility, Alabama Gas Corporation
(Alagasco).

END