1

                             PETROGLYPH ENERGY, INC.
                                1302 NORTH GRAND
                            HUTCHINSON, KANSAS 67501

           THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS


         The undersigned stockholder of Petroglyph Energy, Inc., a Delaware
corporation (the "Company"), hereby appoints Robert C. Murdock and S. Kennard
Smith, or either of them, the proxy or proxies of the undersigned, each with
full power of substitution, to vote all shares of Common Stock of the Company
which the undersigned would be entitled to vote at the Special Meeting of
Stockholders to be held on December __, 2000 at 10:00 a.m., Central Standard
Time at 1302 North Grand, Hutchinson, Kansas 67501, or any adjournment thereof,
according to the number of votes that the undersigned would be entitled to if
personally present upon the matters referred to in this proxy.


THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" EACH OF THE PROPOSALS.

1.       PROPOSAL 1--Approval and adoption of: the Agreement and Plan of Merger,
         dated June 20, 2000 by and between the Company and III Exploration
         Company and the related merger of Petroglyph Acquisition Sub, Inc., a
         wholly owned subsidiary of III Exploration Company, with and into the
         Company whereby each outstanding share of the common stock of the
         Company (other than shares owned by III Exploration and its affiliates)
         will be converted into the right to receive $2.85 in cash.


         [  ] FOR        [  ] AGAINST        [  ] ABSTAIN




                   (CONTINUED AND TO BE SIGNED ON OTHER SIDE)



   2



                           (CONTINUED FROM OTHER SIDE)

         This Proxy when properly executed will be voted in the manner directed
herein by the undersigned stockholder. If no direction is made, this proxy will
be voted FOR the proposals set forth herein.

         The undersigned acknowledges receipt of Notice of Special Meeting of
Stockholders dated __________, 2000, and the accompanying Proxy Statement.


                                 Date: ___________________ , 2000


                                 --------------------------------
                                 Signature


                                 --------------------------------
                                 Signature



                                 --------------------------------
                                 Name(s) (typed or printed)



                                 --------------------------------

                                 --------------------------------
                                 Address(es)



                  Please sign exactly as name appears on this Proxy. When shares
         are held by joint tenants, both should sign. When signing as attorney,
         executor, administrator, trustee or guardian, please give full title as
         such. If a corporation, please sign in full corporate name by the
         President or other authorized officer. If a partnership, please sign in
         partnership name by authorized person.


                  PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY
         USING THE ENCLOSED ENVELOPE. NO POSTAGE IS REQUIRED IF MAILED IN THE
         UNITED STATES.


                                       2