HOUSTON, June 25 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) announced
today that it has completed the sale of certain Volumetric Production Payment
("VPP") assets in a transaction totaling $21.9 million, adjusted for an
effective date of April 1, 1999. Production received from the assets was
13.0 million cubic feet (Mmcf) of gas per day and 310 barrels of condensate
per day at the time of the sale. The Company utilized $15.2 million of the
net cash proceeds received at closing to repay bank debt. The remaining cash
proceeds of approximately $4.0 million are intended to support future capital
spending programs. In addition, KCS has closed five other property sales
since January 1, 1999 realizing $2.4 million for properties that had
$0.4 million SEC PV10 value at year end 1998.
"These divestitures and debt repayments are consistent with the Company's
strategy to monetize non-core properties and reduce debt," stated James W.
Christmas, KCS Energy President and Chief Executive Officer. "We are ahead of
target with our previously announced planned 1999 property sales of $25
million to $30 million. The Company intends to continue its divestiture
effort throughout 1999 and end the year with a more focused asset base."
Since entering into a forbearance agreement on May 18, 1999 with its bank
lenders, the Company has made principal payments under its revolving bank
credit agreements in an aggregate amount of approximately $19.5 million.
These payments have reduced total commitments and outstanding debt under the
revolving bank credit agreements to approximately $130 million.
KCS is an independent energy company engaged in the acquisition,
exploration and production of natural gas and crude oil with operations in the
Mid-Continent and Gulf Coast regions. The Company also purchases reserves
(priority rights to future delivery of oil and gas) through its Volumetric
Production Payment (VPP). For more information on KCS Energy, Inc., please
visit the Company's web site at http://www.kcsenergy.com .
To receive KCS' latest news and other corporate developments via fax at no
cost, please call 1-800-PRO-INFO. Use Company code KCS. Or visit The
Financial Relations Board's web site at http://www.frbinc.com .
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Among the important factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are delays and difficulties in developing currently
owned properties, the failure of exploratory drilling to result in commercial
wells, delays due to the limited availability of drilling equipment and
personnel, fluctuations in oil and gas prices, general economic conditions and
the risk factors detailed from time to time in the Company's periodic reports
and registration statements filed with the Securities and Exchange Commission.
SOURCE KCS Energy, Inc.
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Related links:
http://www.kcsenergy.com
CONTACT:
Kathryn M. Kinnamon, VP & Treasurer of KCS
Energy, Inc., 713-877-8006; or General Info, Marianne Stewart,
Media, Claudine Cornelis, 212-661-8030, or Analyst, Beth Lewis,
617-342-7003, all of The Financial Relations Board
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