Monday, January 24, 2000

American Refining Group Announces an Agreement

to Purchase Oil Producing Properties 

Pennsylvania General Energy Corp. to sell certain oil and gas properties.

American Refining Group, Inc. (ARG) announced today that an affiliate, ARG Resources, Inc., has entered into an Agreement in Principle to purchase from Pennsylvania General Energy Corporation (PGE) certain oil, gas and mineral leases in McKean and Elk counties. The transaction is expected to close by the end of February.

Harry Halloran, Chairman and CEO of American Refining Group, stated, "The proposed purchase of these oil and gas assets by our affiliate, ARG Resources, Inc., will strengthen our company overall. By having assets in both refining and oil production we will better be able to weather the rapid fluctuations that have prevailed in the crude and commodities markets over the past few years. This purchase will also reinforce our ability to supply our refining operations at Bradford with local Penn Grade Crude and serves our long term interests of producing high quality products from Penn Grade Crude."

American Refining Group’s Bradford, Pennsylvania facility is a premier refiner of petroleum specialties and blender/packager of private label and Gulf^® and Brad Penn^® branded lubricants.