|
|
| Costilla Energy Files Disclosure Statement Relating to Proposed Reorganization Plan; Year-End Reserve Estimates Reported |
MIDLAND, Texas, March 2 /PRNewswire/ -- Costilla Energy, Inc.
(OTC Bulletin Board: COSEQ) today reported that it has filed with the U.S.
Bankruptcy Court for the Western District of Texas, Midland Division, a
Disclosure Statement relating to the Company's proposed plan of
reorganization, which was filed on February 11, 2000, under Chapter 11 of the
U.S. Bankruptcy Code. The Disclosure Statement describes the Company's
proposed reorganization plan, and contains certain information about the
Company's business operations and oil and gas properties, including unaudited
financial data for the year ended December 31, 1999, and reserve estimates as
of January 1, 2000. The Disclosure Statement is subject to approval by the
Bankruptcy Court and a hearing has been set on the Disclosure Statement for
April 11, 2000. After approval by the Bankruptcy Court, the Disclosure
Statement will be distributed to parties with certain claims and interests in
the Company in connection with the solicitation of votes on the Company's
proposed plan of reorganization. Costilla's proposed plan of reorganization
is subject to confirmation by the U.S. Bankruptcy Court. There are no
assurances that the Company's plan of reorganization will be approved or when
the effective date of a plan will be set.
The Company intends to file with the Securities and Exchange Commission a
Form 8-K containing its Monthly Operating Report which was previously filed
with the U.S. Bankruptcy Court and includes unaudited financial data for the
period September 3, 1999 through December 31, 1999.
As of January 1, 2000, Costilla's proved reserves were estimated to be
99.1 Bcfe, of which 79 percent was natural gas, with an SEC present value at
10% (PV-10) of $93.2 million, based on year-end NYMEX pricing at December 31,
1999 of $2.33 per Mcf of gas and $25.68 per barrel of oil. Of these estimated
reserves, 63.8 Bcfe were classified as proved developed producing, 13.6 Bcfe
as proved developed non-producing, and 21.6 Bcfe as proved undeveloped.
Subsequent to January 1, 2000, the Company successfully drilled and
completed the Freeman #2 well in the Southwest Speaks Field of Lavaca County,
Texas. Based upon initial results from this new well, the Company has
reclassified the Freeman #2 from proved undeveloped to proved developed
producing, and classified two additional locations proximate to the Freeman #2
as proved undeveloped. If these additional reserves estimated by the Company
had been included in the reserve estimates described above, the Company's
proved reserves at January 1, 2000 would have been 110.5 Bcfe with a PV-10 of
approximately $103.8 million.
Costilla Energy, Inc. is an independent oil and gas company with
operations primarily in the Gulf Coast region of South Texas and the Permian
Basin of West Texas and Southeastern New Mexico.
Certain statements in this news release 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 which may cause the actual results,
performance, or achievements of Costilla Energy, Inc. to be materially
different from any future results, performance, or achievements expressed or
implied by such forward-looking statements. Such factors include, among
others, the following: the volatility of oil and gas prices; the Company's
ability to replace its oil and gas reserves; the availability of capital
resources; the reliance upon estimates of proved reserves; operating hazards
and uninsured risks; competition; government regulation; and the ability of
the Company to implement its business strategy. Additional information is
available in the Company's filings with the Securities and Exchange
Commission, which are incorporated by this reference as though fully set forth
herein.
SOURCE Costilla Energy, Inc.
back to topRelated links:
Company News On-Call:
800-758-5804, ext. 126873
CONTACT:
Guy McCrary of Costilla Energy, Inc.,
915-683-3092
