Coho Energy Announces Closing of Equity and Debt Offering.

DALLAS--(BUSINESS WIRE)--Oct. 3, 1997--Coho Energy, Inc. (Nasdaq:COHO) (TSE:CEE) announced today that it had closed the sale of five million common shares for the benefit of the Company and 4,872,154 common shares for the benefit of certain selling shareholders at a price of $10.50.

Net proceeds to the Company of the equity offering were $49,750,000. Following the equity offering, the Company has 25,465,330 common shares outstanding of which The Morgan Stanley Leveraged Equity Fund II, a selling shareholder, owns 1,350,440 or 5.3 percent.

In addition to the equity offering, the Company sold $150 million of 8.875% senior subordinated notes due 2007. The stock and debt offerings were sold pursuant to a registration statement filed with the Securities and Exchange Commission. The representatives for the underwriters for the stock offering were Morgan Stanley, Dean Witter, Jefferies & Company, Inc., Prudential Securities Incorporated and Smith Barney Inc., while the co-lead underwriters for the debt offering were Morgan Stanley, Dean Witter and Jefferies & Company, Inc.

The aggregate net proceeds to the Company from both offerings of $194.9 million will be used to repay the debt outstanding on the Company's bank credit facility and to fund future capital expenditures.

Coho Energy, Inc. is a Dallas-based independent crude oil and natural gas producer focusing on exploitation of underdeveloped oil properties and exploration in the Mississippi Salt Basin. -0-

For further information or to obtain a copy of the prospectus relating to the securities, contact: Jeffrey Clarke, President and CEO or Anne Marie O'Gorman, Sr. Vice President at 972/774-8300.

CONTACT: Coho Energy, Inc., Dallas

Jeffrey Clarke

or

Anne Marie O'Gorman, 972/774-8300