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 13.675% for the period November 15, 1994 to February 14,
1995.  The Gas Index Price for the determination period (the
Natural Gas Clearinghouse, Inc. average spot gas price for the 12
months ending September 1994) was $1.92.  Since this price exceeded
the Base Price of Gas (defined as $1.75 in the Note Indenture), an 
Additional Interest Rate of 0.425% (.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.