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                                                                    EXHIBIT 99.1

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                                  NEWS RELEASE
                                AUGUST 24, 1999

                              [INLAND LETTERHEAD]

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             INLAND RESOURCES INC. AGREES TO TERMS OF RESTRUCTURING

DENVER, CO - Inland Resources Inc. (OTCBB: INLN) ("Inland") announced today
that Inland and its wholly-owned subsidiary, Inland Production Company ("IPC"),
agreed to terms with its lenders and preferred shareholders regarding the
restructuring of the capital structure of Inland. The restructuring is subject
to the preparation of definitive documents, due diligence, approval by
regulatory agencies, approval by the Board of Directors of Inland, and approval
by the lenders and preferred shareholders.

By the terms of the restructuring, Inland will issue redeemable preferred stock
having an initial liquidation preference of approximately $92 million and
common stock of Inland to IPC's junior secured lender and Inland's preferred
shareholder in exchange for cancellation of certain indebtedness of IPC and
cancellation of Inland's existing Series C Preferred Stock. As a result, the
currently outstanding common stock of Inland will represent approximately 30%
of the outstanding common stock of the Company post-restructuring. In addition,
holders of the new redeemable preferred stock will be entitled to five of six
members of Inland's board of directors.

The restructuring also requires that the existing Farmout Agreement among IPC,
Inland and Smith Energy Partnership, an affiliate of Inland, be amended to
eliminate the option of payments by the issuance of common stock and to provide
for cash payments only.

IPC has also reached an agreement in principle, subject to completion of the
restructuring, to amend its senior credit facility to increase IPC's borrowing
base and to modify certain other terms. Principal payments under IPC's existing
senior credit facility have been extended to September 10, 1999.

Co-CEO, Kyle R. Miller commented, "The restructuring of our balance sheet
reflects the confidence of our capital providers in the Company's business
plans and prospects. We are anxious to resume drilling operations in the
Monument Butte Field and to continue our consolidation efforts within the Uinta
Basin."

The restructuring is expected to close in September 1999.