Disclosure Statement

June 18, 1998 PSE CIRCULAR FOR BROKERS NO. 1358-98 PHILIPPINE STOCK EXCHANGE 4/F Phil. Stock Exchange Centre Exchange Road, Ortigas Center Pasig City Attention: Disclosure Department Listings and Disclosure Group RE : Disclosure Statement Gentlemen : Pursuant to existing rules and regulations on the full disclosure of material events that are or may be of interest to the investing public, we hereby disclose the following: The Etame-1 well-being drilled in offshore Gabon, West Africa by Vaalco Gabon (Etame), Inc., as Operator for the consortium composed of Vaalco, Sasol Petroleum, Western Atlas, Petrofields Corp. and Alcorn Petroleum & Minerals Corp. has reached total depth of 2460 ms. A Drill Stem Test (DST #1) was conducted at an interval between 1870 ms. to 1885 ms. and the well flowed on test 3485 BOPD (barrels of oil per day) of medium light crude through a 36/64 inch choke with no water. The well is now being temporarily plugged and the rig released thereafter. Technical evaluation of the well results will be undertaken by the Operator. This is the first well drilled under the Exploration and Production Sharing Contract entered into with the Republic of Gabon on July 7, 1995. A similar but separate report has been filed with-the Securities and Exchange Commission pursuant to its rules. Very truly yours, ALCORN PETROLEUM AND MINERALS CORPORATION by: (SGD.) PONCIANO K. MATHAY VP & General Manager