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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 (the "GINs") and the
Senior Gas Indexed Notes due 2002 (the "Senior GINs") will be
13.250% for the period February 15, 1996 to May 14, 1996.  The
Gas Index Price for the determination period (the Natural Gas
Clearinghouse, Inc. average spot gas price for the 12 months
ending December 1995) was $1.50.  Since the Base Price of Gas
(defined as $1.75 in the Note Indentures) exceeds the Gas Index
Price, there is no Additional Interest Rate.  Due to its
financial condition, the Company has not paid interest on its
Senior GINs for any period subsequent to February 14, 1995 and
does not anticipate doing so until it has completed the
Restructuring or other arrangements currently being considered to
alleviate its financial difficulties as discussed in its
September 30, 1995 10-Q filed with the Securities and Exchange
Commission.