SECURITIES AND EXCHANGE COMMISSION

                         Washington, D.C.




                             FORM 8-K

                          CURRENT REPORT




              Pursuant to Section 13 or 15(d) of the
                 Securities Exchange Act of 1934



         Date of Report (Date of earliest event reported)
                           July 1, 1997



                    ENSERCH EXPLORATION, INC.
      (Exact name of Registrant as specified in its charter)



     Texas               1-11413                   75-2556975
(State or other        (Commission             (I.R.S. Employer
jurisdiction of        File Number)           Identification No.)
 incorporation)



6688 N. Central Expwy., Ste. 1000, Dallas, TX          75206-3922
(Address of principal executive offices)               (Zip Code)



Registrant's telephone number, including Area Code:  214-692-4300





ITEM 5.  Other Events

     Set forth below in its entirety is a News Release issued by
Enserch Exploration, Inc. on July 1, 1997.

     ENSERCH EXPLORATION AND ENTERPRISE OIL
     ENTER DEEPWATER GULF OF MEXICO VENTURE

          DALLAS, TEXAS (July 1, 1997) -- Enserch Exploration,
     Inc. (NYSE--EEX) and Enterprise Oil (NYSE--ETP) have
     agreed to participate in an exploration venture to
     evaluate EEX's portfolio of offshore blocks in the deep
     water of the Gulf of Mexico.

          The agreement, covering approximately 80 blocks
     primarily in the areas of Garden Banks, Green Canyon and
     Mississippi Canyon, is subject to government approvals
     and certain pre-emption rights on some of the blocks. 
     Excluded from the agreement are reserves at Green Canyon
     254 (Allegheny Project) and reserves and production
     facilities at Garden Banks 388 (Cooper Project)

          Under the agreement, approved by the Boards of each
     company, Enterprise will pay $65 million, which will be
     used to fund EEX's exploration drilling costs and in
     return receive an immediate assignment of 50% of EEX's
     deepwater portfolio.  A further $35 million to be funded
     by Enterprise is contingent on drilling successes and the
     announcement of a commercial development.  Enterprise
     will immediately become a full partner in the relevant
     Joint Operating Agreements.

          The companies intend to conduct a 10 to 12 well
     drilling program over the next two and one-half years
     utilizing two rigs capable of drilling in 3,300 feet of
     water.  The rigs are under long-term contract to EEX at
     below market day rates.  The first well has already been
     spudded on the Llano prospect in Garden Banks 386.

          "Bringing a partner into our deep water program
     substantially accelerates the evaluation of a potentially
     valuable asset by several years while substantially
     reducing our drilling costs.  As importantly, Enterprise
     brings a wealth of experience and a culture that
     complements our efforts to evaluate this inventory
     quickly," said Tom Hamilton, Chairman and President and
     Chief Executive Officer of Enserch Exploration.

          Dr. Pierre Jungels, Chief Executive of Enterprise
     Oil commented: "This agreement will provide us with a
     substantial interest in the highly prospective deep water
     area of the Gulf. As a wide portfolio of interests
     covering some 80 blocks in the deeper waters of the Gulf,
     it also complements last year's deal with Pennzoil which
     gave us significant exploration opportunities primarily
     in the shallower waters of the Gulf.  There we have
     already made an important discovery on the Garden Banks
     161 concession.  A particularly appealing feature of this
     agreement is the access to the two rigs at attractive
     rates which will allow us to immediately commence our
     drilling program."

          Enserch Exploration is one of the largest
     independent natural gas and oil exploration and
     production companies in the U.S.  Active in the drilling
     of exploratory and development wells, the operation of
     producing wells and the marketing of natural gas and oil,
     the Company's areas of focus are East Texas, the Deep
     Water of the Gulf of Mexico, the Continental Shelf of the
     Gulf of Mexico and International.  Natural gas reserves
     at January 1, 1997 were 1.2 trillion cubic feet of
     natural gas and 59.2 million barrels of oil and
     condensate.

          Enterprise Oil is one the world's leading
     independent oil and gas exploration and production
     companies, listed on the London and New York Stock
     Exchanges.  It currently has a production rate of about
     250,000 barrels of oil equivalent (BOE) per day, which is
     due to rise to 320,000 BOE per day in 1999. Its
     recoverable reserves exceed one billion barrels of oil
     equivalent.  The Company's main areas of activity are the
     UK North Sea, where it is operator of the important
     Nelson oil field; Norway; Italy; the U.S. Gulf of Mexico;
     Ireland, the Black Sea and Peru.

     For further information, please contact:

     Enserch Exploration, Inc.:

     Benjamin A. Brown   
     Vice President, Financial Relations
     Dallas:  214/692-4303

     John A. MacDonald
     Director, Investor Relations
     Dallas:  214/692-4345

     Enterprise Oil plc:

     Andrew Shilston
     Finance Director
     London:  171/925-4476

     Ray Dafter
     Director, Corporate Affairs
     London:  171/925-4160





                            SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.

                                   Enserch Exploration, Inc.



Date: July 3, 1997            By:       /s/ R. E. Schmitz
                                   _____________________________
                                   Vice President and Controller