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| Costilla Announces Completion of 500,000 Share Stock Buyback |
Company's Chairman Recently Purchases 492,000 Shares;
Casing Pipe Being Set on Two New Speaks Wells - Preparing for Completion
MIDLAND, Texas, Oct. 28 /PRNewswire/ -- Costilla Energy, Inc.
(Nasdaq: COSE) announced today that its previously announced initiative to
repurchase 500,000 shares of the company's stock on the open market has been
completed. Following the stock buyback, Costilla's outstanding shares total
approximately 9.6 million.
The company also reported that the chairman of Costilla's board of
directors, Cadell S. Liedtke, recently bought 492,000 shares of Costilla
stock, bringing his holdings to approximately 2.8 million shares. Executive
officers of the company now beneficially own approximately 5.2 million shares
of outstanding Costilla Energy stock, or about 54 percent of outstanding
shares as of October 26, 1998.
"I have absolute confidence in the future of our company -- especially
with the opportunities inherent in the Pioneer transaction on the horizon,"
said Liedtke, a founder of the company.
According to Liedtke, Costilla's previously announced acquisition from
Pioneer Natural Resources (NYSE: PXD) is progressing satisfactorily and on
schedule with closing expected in mid-December. Pursuant to this transaction,
the company recently filed a preliminary proxy statement that describes the
actions to be taken by the company's shareholders in connection with the
acquisition.
Regarding its ongoing drilling activities in its gas-rich Southwest Speaks
project, the company reported that it is currently setting pipe and preparing
to complete and produce from two new wells successfully drilled to Lower
Wilcox sands in Lavaca County, Texas. The Garland Walker #1 and the Zalman #1
are scheduled for production commencing in mid-November. Drilling is planned
to commence immediately on two additional wells on Costilla's Speaks project.
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, South and
East Texas, and the Rocky Mountain regions. 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.
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:
Mike Grella, President & CEO, or Guy McCrary,
Manager, Investor Relations, both of Costilla Energy, Inc.,
915-683-3092
