National Energy: Withdraws Offering

NATIONAL ENERGY GROUP INC.
NEWS RELEASE


FOR IMMEDIATE RELEASE                  For further information contact:
                                       Miles D. Bender
                                       214/692-9211


DECEMBER 4, 1997 - DALLAS, TEXAS -- National Energy Group, Inc.
(NASDAQ:NEGX) announced today that its Board of Directors, after
deliberations and discussions with certain major shareholders, is
withdrawing its $100 million convertible preferred offering that
was filed November 26, 1997 with the Security and Exchange Commission.



National Energy Group Inc.
1400 One Energy Square
4925 Greenville Ave.
Dallas, Texas, 75206
214-692-9211
Fax: 214-692-9310

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