FOR IMMEDIATE RELEASE                           FOR FURTHER INFORMATION CONTACT:
                                                STEVE W. HEROD
                                                713/759-6808, EXT. 104

               MIDDLE BAY OIL COMPANY, INC. ANNOUNCES CLOSING OF
             SALE OF  $21.4 MILLION OF COMMON STOCK, WARRANTS AND
        SENIOR SUBORDINATED CONVERTIBLE DEBT TO 3TEC ENERGY CORPORATION



HOUSTON, TEXAS, AUGUST 30, 1999 . . . Middle Bay Oil Company, Inc. ("Middle
Bay" or "Company") (NASDAQ: MBOC) announced today the closing of the
previously announced sale to 3TEC Energy Corporation ("3TEC") of $21.4
million of common stock, warrants and senior subordinated convertible debt.
Pursuant to the terms of the Securities Purchase Agreement executed July 1,
1999, 3TEC purchased 4,755,556 shares of newly issued Middle Bay common stock
and five year warrants to purchase 3,600,000 shares of Company common stock
for $10.7 million. The warrants are exercisable for $1.00 per share and are
subject to certain restrictions regarding the timing of their exercise.
Middle Bay issued 3TEC a senior subordinated convertible note for $10.7
million (the "Note"). The Note has a five-year maturity, bears interest at 9%
per annum and is convertible into Middle Bay common stock at $3.00 per share,
a total of 3,566,667 common shares. The proceeds from the transaction have
been added to working capital and will be available for the acquisition,
development and exploration of oil and gas properties.

3TEC Energy Corporation is a privately held independent exploration and
production company based in Dallas, Texas whose largest shareholder is an
affiliate of EnCap Investments L.C. ("EnCap"). With over $1 billion in funds
under management, EnCap is a Houston based institutional funds management
firm specializing in financing the upstream and midstream sectors of the
energy industry. EnCap is a wholly owned subsidiary of El Paso Energy
Corporation.  Floyd C. Wilson, former President and Chief Executive Officer
of Hugoton Energy Corporation, is a major shareholder and President of 3TEC.
Concurrent with the closing of the 3TEC/Middle Bay transaction, Mr. Wilson
became Chairman, President and Chief Executive Officer of Middle Bay.  John
J. Bassett, formerly Middle Bay's President and Chief Executive Officer,
became Executive Vice President.

At closing, 3TEC became Middle Bay's largest shareholder with ownership of
approximately 36% of the outstanding common stock. Under the terms of a



shareholders agreement executed at closing, 3TEC has the right to designate
three members of a new five person Middle Bay Board of Directors. The Board
members designated by 3TEC are Mr. Wilson, David B. Miller and D. Martin
Phillips. Mr. Miller and Mr. Phillips are both managing directors of EnCap.
Certain other major shareholders of the Company have the right to designate
the other two board members, who are Mr. Bassett and Gary R. Christopher of
Kaiser-Francis Oil Company. Kaiser-Francis Oil Company is the Company's
second largest shareholder with ownership of approximately 25% of Middle
Bay's outstanding common stock.

Middle Bay Oil Company, Inc. is an independent oil and gas exploration and
production company, headquartered in Houston, Texas, with operations in the
Gulf Coast and Mid-Continent regions.

The information contained in this press release may contain projections,
estimates and other forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that its goals will be
achieved. Important factors that could cause actual results to differ
materially from those included in the forward-looking statements include the
timing and extent of changes in commodity prices for oil and gas,
environmental risks, drilling, producing and operating risks, risks related
to exploration and development, uncertainties about the estimates of
reserves, government regulation, competition and the ability of the Company
to meet its stated business goals.