EXHIBIT 99

FOR IMMEDIATE RELEASE

                      PETROCORP ACQUIRES CANADIAN COMPANY

     HOUSTON (January 7, 1997)--PetroCorp Incorporated (NASDAQ:PETR) today 
announced its acquisition of Millarville Oil & Gas Ltd., a privately held 
Alberta corporation that owns and operates oil and gas properties in Alberta, 
Canada. The transaction was completed on December 23, 1996.

     Proved developed reserves acquired in the transaction total 0.9 million 
barrels of oil and 6.4 Bcf of natural gas. Average net daily production from the
properties in 1996 was 443 barrels of oil and 2,770 Mcf of natural gas. The cash
acquisition price was $11.7 million ($US). PetroCorp, through its Canadian 
subsidiary PCC Energy Limited, will become operator of approximately 65% of the 
acquired reserves.

     On an unaudited pro forma basis, as though the transaction occurred at the 
beginning of 1996, the Millarville acquisition would have increased PetroCorp's 
1996 revenues by $4.3 million, earnings by $0.9 million and cash flow by $2.9 
million.

     Neil McBean, President and Chief Executive Officer of PetroCorp, said, 
"Strategically, the acquisition is a significant addition to our existing 
holdings in Alberta, one of our core areas. The acquisition is also important in
establishing PetroCorp as an operator in Alberta, which we believe will open 
other doors to opportunity there.

     "We are very excited about these properties, both in the quality of 
existing reserves, and the opportunity to increase the reserves through 
additional development. We have already taken steps to improve the operating 
efficiency of the properties. During the first half of 1997, we will be 
acquiring 2-D and 3-D seismic data that we hope will confirm drilling plans for 
the second half of the year. At the corporate level, only a minimal increase in 
our staff will be necessary."

     PetroCorp, a Houston-based company, explores, develops and acquires oil and
gas properties in North America. The Company operates principally in the states 
of Colorado, Oklahoma, Kansas, Texas and Mississippi and in the province of 
Alberta, Canada.

CONTACT: Craig K. Townsend, Vice President--Finance, (281) 875-2500.