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| Costilla Energy Obtains Bank Loan Extension; Company's Bank Group Waives Default on Payments Due August 10th |
MIDLAND, Texas, Aug. 18 /PRNewswire/ -- Costilla Energy, Inc. (COSE)
announced today that it has negotiated a satisfactory amendment to its bank
credit agreement which includes a waiver of default related to the Company's
loan payments that were due on August 10th, and an extension of other payments
due, until September 15th. The extension follows the disbursement of certain
proceeds from escrow funds related to the Company's previously announced sale
of Rocky Mountain properties. After the disbursement, Costilla's principal
balance due to the Company's bank group is approximately $26.5 million. An
additional amount of $2.2 million of derivative payments is due to the Agent
Bank, which is the counter-party to the Company's hedging transactions.
Following de-listing from the Nasdaq National Market on August 16th,
Costilla's common stock is currently trading on the "Pink Sheets" operated by
the National Quotation Bureau, LLC. The Company is working with Market Makers
of its common stock to seek application for quotation on the OTC Bulletin
Board.
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, Manager, Investor Relations of
Costilla Energy, Inc., 915-683-3092
