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                              [OCEAN ENERGY LOGO]


FOR IMMEDIATE RELEASE
February 23, 2001

CONTACTS:
Bruce Busmire - 713-265-6161 (financial)
Janice Aston White - 713-265-6164 (media)


                 OCEAN ENERGY COMPLETES TENDER OFFER FOR TEXOIL

HOUSTON, TEXAS - FEBRUARY 23, 2001 - Ocean Energy, Inc. (NYSE:OEI) announced
today that its subsidiary OEI Acquisition Corp. has successfully completed its
tender offer for all of the outstanding shares of common stock of Texoil, Inc.
(NASD: TXLI) at a price of $8.25 per share and all outstanding shares of Series
A Preferred Stock of Texoil at $18.04 per share.

The tender offer expired at 12 a.m. midnight, New York City time, on Thursday,
February 22, 2001, and Ocean Energy accepted for payment approximately 6,970,966
shares of Texoil common stock that had been tendered (including approximately
26,340 shares that were guaranteed to be delivered), which represent
approximately 94 percent of the issued and outstanding shares of Texoil common
stock. Ocean Energy accepted for payment 2,991,465 shares of Texoil Series A
Preferred Stock that had been tendered, which represent 100 percent of the
issued and outstanding shares of Texoil Series A Preferred Stock. OEI
Acquisition Corp. will promptly pay for the shares tendered.

"We are pleased to complete this cash tender process in just 36 days from
signing the definitive agreement," said Robert K. Reeves, executive vice
president and general counsel. "The successful acquisition of Texoil adds
attractively priced reserves to Ocean's portfolio of domestic properties."

Ocean Energy and Texoil announced the signing of a definitive agreement on
January 18, 2001. Ocean Energy expects that OEI Acquisition Corp. will be merged
with and into Texoil, Inc. as soon as practicable, and by the end of the first
quarter. As a result of the merger, shares of Texoil common stock that remain
outstanding will be converted into the right to receive the same $8.25 per share
in cash, without interest. Following the merger, Texoil will become a subsidiary
of Ocean Energy.

Texoil is engaged in the acquisition of oil and gas reserves through a program
that includes purchases of reserves, re-engineering, development and exploration
activities currently focused in Texas and Louisiana.



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Ocean Energy, Inc. is an independent energy company engaged in the exploration,
development, production and acquisition of crude oil and natural gas. North
American operations are focused in the shelf and deepwater areas of the Gulf of
Mexico, the Permian Basin, Mid-continent and Rocky Mountain regions.
Internationally, Ocean holds a leading position among U.S. independents in West
Africa with oil and gas activities in Equatorial Guinea, Cote d'Ivoire and
Angola. Ocean also conducts operations in the republics of Egypt, Tatarstan,
Pakistan and Indonesia.

CERTAIN STATEMENTS IN THIS NEWS RELEASE MAY CONSTITUTE "FORWARD-LOOKING
STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE
AND ACHIEVEMENT OF OCEAN ENERGY OR TEXOIL TO BE MATERIALLY DIFFERENT FROM ANY
FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENT EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS.