EXHIBIT 99.1

                                                            Information:
                                                            ------------
                                                            Mark A. Hellerstein
                                                            Jennifer Dethloff
                                                            Adele A. Linneman
                                                            303-861-8140




FOR IMMEDIATE RELEASE
- ---------------------

                         ST. MARY SIGNS MERGER AGREEMENT
                             WITH KING RANCH ENERGY

DENVER,  July 27,  1999 - St. Mary Land &  Exploration  Company  (Nasdaq:  MARY)
announced  that it had signed an agreement to acquire  King Ranch  Energy,  Inc.
("KRE"),  a subsidiary  of King Ranch,  Inc., in a merger in which St. Mary will
issue 2,666,252  common shares to shareholders of King Ranch and KRE will become
a wholly owned subsidiary of St. Mary. KRE's properties are located primarily in
the Gulf of Mexico and the onshore Gulf Coast. Other than accounts payable,  KRE
has no debt to be assumed.

KRE's reported  reserves at December 31, 1998, plus an acquisition made early in
1999, were 64.7 BCF equivalent. Production for 1998 was 48.8 MMCF equivalent per
day. The KRE reserves are 82% natural gas.

Tom  Congdon,  Chairman  of St.  Mary,  commented,  "There's a natural  affinity
between the long-standing  stockholders of St. Mary and the owners of King Ranch
Energy. Both invest for the long term with the objective of building value."

This  accretive  transaction  will  also  combine  the  quality  assets  of both
companies  under a single  management,  with the result  that  significant  cost
savings are anticipated.

The agreement, which has been unanimously approved by the Boards of Directors of
both  companies,  is subject to obtaining a favorable  vote of St. Mary and King
Ranch shareholders.

Deutsche  Banc  Alex.  Brown  acted  as St.  Mary's  financial  advisor  in this
transaction. Nesbitt Burns Securities, Inc. acted as advisor to King Ranch, Inc.

Except for historical information herein, statements in this release,  including
information  regarding  the  business  of the  Company,  may be forward  looking
statements.   These  statements   involve  known  and  unknown  risks,  such  as
uncertainties  in cash flow,  the  volatility  and level of oil and  natural gas
prices,  production rates and reserve replacement,  reserve estimates,  drilling
and operating risks, competition, the impact of the year 2000 computer issue and
the potential  impact of government  regulations,  litigation and  environmental
matters,  that may cause the Company's actual results to differ  materially from
forecasted results.

St. Mary Land & Exploration  Company (Nasdaq:  MARY), an independent oil and gas
concern, has diversified exploration, development and production holdings in the
Mid-Continent  region;  the  tri-state  area  of  northern  Louisiana,  Southern
Arkansas,  and eastern  Texas;  south  Louisiana;  and the Williston and Permian
Basins.