Houston Exploration Announces Operations Reorganization

The Houston Exploration Company is pleased to announce a corporate realignment to facilitate the Company's operating strategy and growth plans.

The Company has created two operating divisions: Onshore and offshore, which will function as strategic business units for the Company's oil and gas operations. Steve Mueller will join the Company as Senior Vice President and General Manager of the Onshore Division, a business unit currently producing 110 Mmcf/d from fields in South Texas, Arkansas, Louisiana, East Texas and West Virginia. Mr. Mueller brings over 26 years of industry experience. Most recently Mr. Mueller was Senior Vice President of Exploration and Production at Belco Oil and Gas Company. Prior to Belco, Mr. Mueller has held management and engineering positions at Fina Oil and Gas, American Exploration Company and Tenneco Oil Company.

Charles Adcock, currently Senior Vice President of Operations and Engineering, will serve as Senior Vice President and General Manager of the Offshore Division, a business unit currently producing 135 Mmcf/d from Offshore Texas and Louisiana fields.

Commenting on the new divisions, William G. Hargett, President and Chief Executive Officer stated, "I am very pleased to announce the new changes in our corporate structure. The Company has exciting growth prospects, and these changes will align our corporate structure with management expertise. I believe this will result in more focused and effective operations, which will enhance our ability to maximize performance of each business unit and implement our future growth plans.