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                                                     EXHIBIT 20.1

 
 
 
 
 
                         PRESIDIO OIL COMPANY 
                              ANNOUNCES 
 
 
 
     The Interest Rate on Presidio Oil Company's Senior 
Subordinated Gas Indexed Notes due 1999 and the Senior Gas 
Indexed Notes due 2002 will be 14.125% for the period May 16, 
1994 to August 15, 1994.  The Gas Index Price for the 
determination period (the Natural Gas Clearinghouse, Inc. average
spot gas price for the 12 months ending March 1994) was $2.10.  
Since this price exceeded the Base Price of Gas (defined as $1.75
in the Note Indenture), an Additional Interest Rate of 0.875% 
(.025% for every $.01 the Gas Index Price exceeds the Base Price
of Gas) will be added to the base rate of 13.25% for this 
interest period only.