Monterey Resources, Inc.
Ticker: MRC 5201 Truxtun Avenue, Suite No. 100
Exchange: New York Stock Exchange Bakersfield, California 93309
Industry: Natural Resources (805) 322-3992

Type of Shares:Common Shares Filing Date:9/18/96
U.S. Shares:8,150,000 Offer Date:11/13/96
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:8,150,000 Offer Price:$14.50
Secondary Shares:0 Gross Spread:$0.98
Offering Amount: $114,100,000 Selling:$0.58
Expenses: - Reallowance:$0.10
Shares Out After:53,250,000
Spin out parent firm: Santa Fe Energy Resources

ManagerTierPhone
Goldman, Sachs & Co.Lead Manager (212) 902-1172
Morgan Stanley & Co. IncorporatedCo-manager (212) 703-4797
Petrie Parkman & Co.Co-manager (303) 292-3877

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$211.00$126.00$105.00Assets:$410.00
Net Income:$36.00$24.00$17.00Liabilities:$359.00
EPS:$0.68Equity:$51.00

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
Monterey Resources, Inc., a wholly owned subsidiary of SFR, is an independent oil and gas company engaged in the production, development and acquisition of oil and natural gas in State of California. As of September 1, 1996 the company had net proved reserves of approximately 214 MMBOE with a pre-tax net present value, discounted at 10%, of approximately $750 million, according to estimates prepared by Ryder Scott Company, independent petroleum engineers. In 1995 the company's operations generated total revenues of approximately $211 million and net income of approximately $36 million. During the eight months ended August 31, 1996, the company's average production was approximately 46 MBOE per day, resulting in a reserve-to-production ratio of 12.7 years.

Use of Proceeds
The proceeds from the proposed offering will be used to repay certain outstanding indebtedness of the company and the balance, if any will be used for working capital purposes.

Last updated: 12/8/96

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