Coho Energy Announces Terms of Proposed Plan of Reorganization.

DALLAS--(BUSINESS WIRE)--Nov. 22, 1999--

Coho Energy, Inc. (OTC BB:COHO) announced today that the Company has filed with the U.S. District Bankruptcy Court of the Northern District of Texas a proposed plan of reorganization in accordance with federal bankruptcy laws. The plan of reorganization sets forth the means for satisfying claims, including liabilities subject to compromise, and interests in the Company.

In general the proposed plan provides for the following treatment:

-- Senior secured debt (which includes principal plus accrued

interest at Sept. 30, 1999 of approximately $252 million and

reasonable fees and expenses under the Company's bank credit

facility) will receive on the effective date of the plan an

initial payment of at least $27 million of principal plus all

accrued and unpaid interest and all reasonable fees and expenses.

The balance of the principal, together with interest, will be

repaid over seven years.

-- The Company's 8 7/8% Senior Unsecured Notes due 2007 with

principal of $150 million and accrued interest of approximately

$12 million will be paid in full by receiving on the effective

date of the plan 96% of new common stock of the reorganized

company.

-- Holders of existing Coho common stock will be issued the

remaining 4% of new common stock together with the right to

purchase additional new common stock on a pro rata basis for

$0.26 per share. If the approximately $75 million rights offering

is not fully taken up by existing common stockholders, the

Company will offer any unsubscribed shares in a private

placement. A standby loan of up to $60 million will be provided

by several of the Company's bondholders and will guarantee the

rights offering.

-- Other allowed general unsecured claims will receive cash payments

in four quarterly installments, the first of which shall be paid

on the effective date of the plan.

A commitment letter for the standby loan from several of the bondholders will be presented to the bankruptcy court for approval. The current terms of the bondholder standby loan provide for payment of a minimum 15% interest rate with additional interest payable after the second year that will escalate 2% for every whole dollar that the weighted average of the daily closing contract price for NYMEX crude oil for non-hedged production and the benchmark oil price received by the Company for hedged production exceeds $18 per barrel, up to a maximum interest rate of 25%. If the Company draws on the standby loan the lenders will be entitled to a pro rata share, based on the amount drawn, of an additional 15% of the shares of new common stock.

Contemporaneous with the filing of the plan, the Company has sought Bankruptcy court approval of procedures whereby other parties interested in providing an alternate guaranteed facility on more favorable terms may offer binding commitments.

The consummation of a plan of reorganization will require bankruptcy court approval and is expected to be voted on by the Company's creditors and shareholders entitled to vote. At this time, no assurances can be given that the plan of reorganization submitted by the Company will be approved or when the effective date of the plan will be set; however, at the present time, the Company anticipates that a hearing to consider its plan will be scheduled in February 2000. In addition it is not possible to predict the outcome of the bankruptcy proceedings, in general, or the effect on the business of the Company or on the interests of creditors or stockholders.

Coho Energy, Inc., is a Dallas-based oil and gas producer focusing on exploitation of underdeveloped oil properties in Oklahoma and Mississippi.