UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO. 15610 / January 6, 1998

     SECURITIES AND EXCHANGE COMMISSION v. KINLAW SECURITIES CORP., et al.,
     3:93-CV-2010-T, USDC, ND/TX (Dallas Division)

          The Securities and Exchange Commission ("Commission") announced that
     Final Judgments of Permanent Injunction and Other Equitable Relief were
     entered in United States District Court in Dallas, Texas, against Dyke
     Ferrell and Bret L. Boteler on December 18, 1997, and against James B.
     Boswell and Cecil E. Glass III on December 23, 1997, enjoining them from
     future violations of the federal securities laws. The defendants consented
     to the entry of the final judgments without admitting or denying the
     allegations contained in the Commission's First Amended Complaint. All the
     defendants are former sales representatives of the now defunct Kinlaw
     Securities Corporation, a broker dealer formerly registered with the
     Commission which offered and sold securities in the form of investment
     contracts involving interests in oil and gas drilling ventures. 

          The Commission's First Amended Complaint alleged that in the offer and
     sale of the oil and gas drilling ventures, the defendants made material
     misrepresentations and omissions of material fact concerning, among other
     things, the risks and expected returns associated with the oil and gas
     investments, the costs to drill and complete oil and gas wells, and the
     success of prior oil and gas wells, all in violation of Sections 5(a), 5(c)
     and 17(a) of the Securities Act of 1933, and Section 10(b) of the
     Securities Exchange Act of 1934, and Rule 10b-5 thereunder. 

          The court also ordered the defendants to pay disgorgement in the
     following amounts: 1) Ferrell - $412,500, plus prejudgment interest of
     $244,077; 2) Boteler -  $297,536 plus prejudgment interest of $185,061; 3)
     Boswell - $1,243,000 plus prejudgment interest of $56,564; and 4) Glass - 
     $1,142,658 plus prejudgment interest of $51,998. 

          Based on their demonstrated financial inability to pay, the full
     disgorgement amounts for Boteler and Glass were waived. Payment of all but
     $26,000 of Ferrell's disgorgement amount was waived based on his
     demonstrated financial inability to pay the full amount, and payment of all
     but $1,628 of Boswell's disgorgement was waived based on his demonstrated
     financial inability to pay the full amount. Additionally, the court did not
     impose civil penalties against the defendants because of their poor
     financial condition.










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