PROSPECTUS SUPPLEMENT NO. 12 DATED FEBRUARY 10, 1995                 Pursuant to
(TO PROSPECTUS DATED OCTOBER 3, 1994)                             Rule 424(b)(3)
                                                               Reg. No. 33-54561

                        800,000 Depositary Shares,
        4,000 Shares of $450 Cumulative Convertible Preferred Stock
                                    and
                     17,777,777 Shares of Common Stock

                       AMERICAN EXPLORATION COMPANY

     The following beneficial owner of Depositary Shares has requested the
Company to file a Prospectus Supplement identifying it as a Selling
Securityholder. The information concerning such Selling Securityholder has
been provided by such Selling Securityholder.

                                           No. of         % of          % of
                                         Depositary    Outstanding  Outstanding
                             No. of        Shares      Depositary    Depositary
     Selling               Depositary    That May Be     Shares        Shares
   Securityholder         Shares Owned      Sold       Before Sale   After Sale
   --------------         ------------   -----------   -----------   ----------
SunAmerica Asset
  Management Corp.
733 Third Avenue
New York, NY 10017-3204       3,200           200         0.40%         0.38%
                              -----           ---         -----         -----
    Total                     3,200           200         0.40%         0.38%
                              =====           ===         =====         =====

     Additional Selling Securityholders or other information concerning the
Selling Securityholder listed above may be set forth in subsequent Prospectus
Supplements from time to time. As a result of such additional Prospectus
Supplements, the total amount of Depositary Shares offered for the account of
Selling Securityholders may increase further, up to a maximum of 800,000
Depositary Shares.