Coho Announces Letter of Intent for the Sale of Mississippi Properties.Business Editors DALLAS--(BUSINESS WIRE)--Sept. 14, 2001 Coho Energy, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CHOH CHOH Chesapeake and Ohio Canal National Historic Park (US National Park Service) ) announced today it has entered into a letter of intent for the sale of its Mississippi oil and gas assets to an undisclosed third party for an aggregate cash purchase price of $80 million. The proposed sale is subject to the ability of the purchaser to obtain financing for the transaction and other customary conditions to close an asset sale, including the execution of a definitive agreement, all of which is currently scheduled to be finalized by mid-October. The Mississippi properties, which are located primarily in the Brookhaven, Laurel, Martinville and Soso fields, produced 4,725 BOE/day for the quarter ended December 31, 2000 and 5,205 BOE/day for the quarter ended June 30, 2001. At December 31, 2001, the Mississippi properties contained an aggregate total of 30,035 MBOE MBOE Thousands of Barrels of Oil Equivalent MBOE Milford Board of Education (equivalent barrels of oil per day) of net proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. , representing approximately 30% of the Company's net proved reserves and approximately 42% of the Company's net revenues. The Company anticipates all proceeds will be used to reduce borrowings under its senior revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. Currently, the Company has borrowing of $195 million outstanding under its senior credit facility. Coho Energy, Inc. is a Dallas based oil and gas producer focusing on exploitation of underdeveloped oil properties in Oklahoma and Mississippi. |
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