EXHIBIT 20.1
                                                                                


HOUSTON -- Southern Mineral Corporation (NASDAQ: SMIN) and Amerac Energy
Corporation (AMEX: AMC) today announced  that they have signed a definitive
agreement for the merger of AMC into SMIN.  The combined entities will have
reserves of approximately 80 Bcfe, with operations in Texas and Oklahoma and
properties primarily in Texas, Louisiana, Oklahoma, Canada and Ecuador.  Under
the terms of the agreement, SMIN will exchange its common shares for all AMC
common shares based upon the average closing price of SMIN for a twenty-day
period preceding the closing of the merger.  Under the terms of the agreement,
no less than 2.7 million nor more than 3.3 million shares of SMIN common stock
will be exchanged for AMC shares, based upon the average SMIN share price of
$8.25 to $6.75, respectively.  As of October 31, 1997, AMC had 3,891,981 shares
of common stock outstanding.  In addition, SMIN will assume AMC's indebtedness.
The merger is subject to approval of shareholders of both SMIN and AMC.  The
merger is expected to be completed in early 1998.

Amerac is engaged in the acquisition, production and development of oil and gas
properties primarily in Texas and Oklahoma.  Amerac's Common Stock is traded on
the American Stock Exchange under the symbol AMC.

Southern Mineral Corporation is an oil and gas acquisition, exploration and
production company that owns interests in oil and gas properties located along
the Gulf Coast, Canada and Ecuador.  The Company is listed on the NASDAQ
National Market under the symbol SMIN.