Belco Announces $250 Million Credit Facility.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 10, 2000

Belco Oil & Gas Corp. (BOG:NYSE) announced today that it has entered into a $250 million amended and restated credit agreement with a group of nine major U.S. and international banks.

The current borrowing base under the amended credit facility is $200 million. The new facility replaces Belco's previous $150 million credit facility. Funded indebtedness under the new facility will bear interest at rates ranging from LIBOR plus 1-1/8% to LIBOR plus 1-5/8%, depending upon the amount of the borrowing base utilized at the time. As of July 7, 2000, $113 million was funded under the new facility at an interest rate of LIBOR plus 1-3/8%.

The Chase Manhattan Bank arranged and agented the new credit facility while Bank of America, Deutsche Bank and Fleet Boston Corp. acted as co-agents. The unsecured facility is guaranteed by Belco's subsidiaries and supported with the pledge of the stock of the guarantor subsidiaries. The facility is governed by a borrowing base which is subject to semiannual redeterminations.

Robert A. Belfer, Chairman and CEO of Belco stated, "We are pleased with the strong support Belco received from the premier energy banks in the country. This support and the attractive terms of our new credit agreement are testimony to Belco's quality reserve base and consistently solid operating results."

Belco is an independent energy company engaged in the exploration, development, acquisition and production of natural gas and oil.

This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934. Although BOG believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements here include the timing and extent of changes in commodity prices for oil and gas, the need to develop and replace reserves, environmental risks, drilling and operating risks, risks related to exploration and development, uncertainties about the estimates of reserves, competition, government regulation and the ability of the Company to meet its stated business goals.