KCS Energy Acquires Texas Acreage

KCS Energy has acquired a 42,300 acre lease and a 3D seismic license which covers approximately 100 square miles in Goliad County, Texas. The Company has already identified more than a dozen Frio, Yegua and Wilcox exploration prospects on the acreage. KCS plans to initiate drilling in the fourth quarter of 2004 with continued drilling expected in 2005 and beyond.

Commenting on the South Texas acreage, Chief Operating Officer and President William N. Hahne explained, "Our Gulf Coast exploration team has allowed us to experience very high drilling success rates on seismically controlled plays on trend with this new acreage. The prospects that the team has identified are a logical extension of our drilling program and a solid addition to our exploration prospect inventory."