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| Costilla Commences Restructuring Initiative; Significant Overhead Reductions Included |
MIDLAND, Texas, May 6 /PRNewswire/ -- Costilla Energy, Inc. (Nasdaq: COSE) reported today that it has initiated a restructuring plan that includes significant cost reductions. The Company has reduced its overhead expenses by approximately $225,000 per month, or about $675,000 on a projected quarterly basis, as a result of a work force reduction and other cost savings measures. The reduction in work force is effective immediately, and affects 34 Midland area jobs and 8 jobs in the Company's Corpus Christi area of operations. Costilla is also actively marketing certain of its oil and gas properties as previously announced. Costilla Energy, Inc. is an independent energy company actively engaged in the exploration, acquisition and development of oil and gas properties, with operations primarily in the Permian Basin of Texas and New Mexico, the Gulf Coast region of South Texas, and the Rocky Mountains. Headquartered in Midland, Texas, the Company and its predecessors have been in business since 1988. The Company's common stock is traded on the Nasdaq National Market under the symbol COSE. Additional information about Costilla is available on the Internet at http://www.costillaenergy.com. 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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CONTACT:
Guy McCrary, Manager, Investor Relations of
Costilla Energy, Inc., 915-683-3092
