Kelley Oil and Gas Corporation Declares Dividend of $2.625 Per Share On Its $2.625 Convertible Exchangeable Preferred Stock

Business Wire, April 14, 1998

HOUSTON--(BUSINESS WIRE)--April 14, 1998--KELLEY OIL & GAS CORPORATION (Nasdaq NM:KOGC) (the "Company") announced today that the Company's Board of Directors declared a dividend of $2.625 per share on its $2.625 Convertible Exchangeable Preferred Stock payable on May 1, 1998 to preferred stockholders of record as of April 24, 1998. These payments, which cover four quarters, approximate $4.6 million and will be mailed on April 30.

The Company's common and preferred stock are traded on the NASDAQ National Market under the symbols KOGC and KOGCP. -0-

Kelley Oil & Gas Corporation's common and preferred stock are traded on the NASDAQ National Market under the symbols KOGC and KOGCP, and company information is available on the World Wide Web at http://www.kelleyoil.com.

CONTACT: David C. Baggett, Kelley Oil & Gas, Houston

Senior Vice President and Chief Financial Officer

Telephone: (713) 652-5200