Houston Exploration Company, The
Ticker: THX 1331 Lamar, Suite 1065
Exchange: New York Stock Exchange Houston, Texas 77010
Industry: Natural Resources (713) 652-2847

Type of Shares:Common Shares Filing Date:5/24/96
U.S. Shares:6,200,000 Offer Date:9/19/96
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:6,200,000 Offer Price:$15.50
Secondary Shares:0 Gross Spread:$1.09
Offering Amount: $86,800,000 Selling:$0.65
Expenses: - Reallowance:$0.10
Shares Out After:22,402,763
Spin out parent firm: Brooklyn Union Gas Company, The

ManagerTierPhone
Goldman, Sachs & Co.Lead Manager (212) 902-1172
Donaldson, Lufkin & Jenrette Securities Corp.Co-manager (212) 504-4525
PaineWebber IncorporatedCo-manager (212) 713-2626

Auditor: Arthur Andersen
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$41.21$21.79$21.15Assets:$263.84
Net Income:-$0.30$2.79$3.03Liabilities:$147.52
EPS:$0.00$0.18$0.20Equity:$116.32

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

Business Description
The company is an independent natural gas and oil company engaged in the exploration, development and acquisition of domestic natural gas and oil properties. The company's offshore properties are located in the shallow waters of the Gulf of Mexico, and its onshore properties are located in the Arkoma Basin, East Texas and West Virginia. The company has grown its Gulf of Mexico reserves and production through exploratory drilling and subsequent development expertise. The company has grown its onshore reserves and production through successful acquisitions and subsequent exploitation and development of low risk, long-lived reserves. The company believes that these lower risk projects and the stable production from its longer-lived onshore properties complement its high potential exploratory prospects in the Gulf of Mexico by balancing risk and reducing volatility.

Use of Proceeds
The proceeds from the proposed offering will be used to repay outstanding indebtedness under the company's credit facility and to pay the cash portion of the purchase price for the Soxco acquisition.

Last updated: 10/28/96

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