Coho Energy, Inc. Announces Filing of Registration Statement.

DALLAS--(BUSINESS WIRE)--Aug. 20, 1997--Coho Energy, Inc. (Nasdaq:COHO) (TSE:CEE) announced today that it has filed a registration statement covering the sale of 8,584,482 shares of its common stock, including 5,000,000 shares to be offered by the company and 3,584,482 shares to be offered by three of its shareholders -- The Morgan Stanley Leveraged Equity Fund II, L.P., Quinn Oil Company Ltd., and Kenneth H. Lambert.

The registration statement also covers $125 million in principal amount of Senior Subordinated Notes due 2007. Approximately $140 million of the proceeds of the offerings will be used to repay indebtedness under Coho's existing credit facility, and the remaining proceeds will represent new financing.

The public offering of the stock will be underwritten by Morgan Stanley Dean Witter, Jefferies & Company, Inc., Prudential Securities Incorporated and Smith Barney Inc. The public offering of the notes will be underwritten by Morgan Stanley Dean Witter and Jefferies & Company, Inc.

Coho is an independent energy company engaged in the development and production of, and exploration for, crude oil and natural gas.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor any offers to buy accepted prior to the time the registration statement becomes effective. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

A copy of the registration statement covering these securities may be obtained from Jeffrey Clarke or Anne Marie O'Gorman at Coho Energy, Inc., 14785 Preston Road, Suite 860, Dallas, Texas 75240.

CONTACT: Coho Energy, Inc., Dallas

Jeffrey Clarke

or

Anne Marie O'Gorman, 972/774-8300