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| Costilla Energy Executes Agreement to Sell Oil and Gas Assets to Louis Dreyfus |
MIDLAND, Texas, April 24 /PRNewswire/ -- Costilla Energy, Inc. (OTC Bulletin Board: COSEE) reported today that it has executed an Asset Purchase Agreement with Louis Dreyfus Natural Gas Corp. (NYSE: LD), whereby Costilla will sell its oil and gas properties and related assets to Louis Dreyfus for a base price of $100 million in cash. The Agreement is subject to approval and authorization of the United States Bankruptcy Court for the Western Division of Texas, before which Costilla's reorganization under Chapter 11 of the U.S. Bankruptcy Code is pending. If the Agreement is approved, the closing is anticipated prior to the end of June 2000. The Agreement with Louis Dreyfus substantially alters certain parts of Costilla's Plan of Reorganization filed with the Bankruptcy Court on February 11, 2000. However, the Company anticipates that all equity interests in Costilla will be cancelled and will not receive any distribution as previously indicated. Costilla expects to file a new or amended Disclosure Statement relating to the Company's plan. 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. The Company filed a petition under the provisions of Chapter 11 of the U.S. Bankruptcy Code on September 3, 1999, and has continued to operate as debtor-in-possession since that time. 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.
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Guy McCrary of Costilla Energy, Inc.,
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