Coho Energy Announces Year End Proved Oil and Gas Reserves, Improved Financial Results and Provides Update of Proposed Plan of Reorganization and Record Date for Rights Offering.Business Editors DALLAS--(BUSINESS WIRE)--Feb. 28, 2000 Coho Energy, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :COHO) reported today that its 1999 year end proved oil and gas reserves increased 3.1% to 114.5 million barrels of oil equivalent. The Company also reported improved financial results for the quarter and year ended Dec. 31, 1999. In addition, the Company announced that the record date for the rights offering proposed under its bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most Plan of Reorganization was set at the close of business on March 6, 2000. PROVED CRUDE OIL AND NATURAL GAS RESERVES Coho's 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. at Dec. 31, 1999 rose 3.1% to 107.7 million barrels of oil and natural gas liquids and 40.6 billion cubic feet of natural gas from 100.0 million barrels of oil and 66.3 billion cubic feet of natural gas at Dec. 31, 1998. When taking into account the year's production of 3.8 million barrels of oil equivalent, the increase in reserves was 6.5% over year end 1998 reserves. The increase in oil and natural gas liquids reserves reflects the substantial improvement in crude oil prices at year end 1999 when compared with the dramatic decline in crude oil prices experienced in 1998 and a change in methodology for reporting liquids derived from natural gas processing Natural gas processing plants, or fractionators, are used to purify the raw natural gas extracted from underground gas fields and brought up to the surface by gas wells. The processed natural gas, used as fuel by residential, commercial and industial consumers, is almost pure . The Company's New York Mercantile Exchange New York Mercantile Exchange (NYMEX) The world's largest physical commodity futures exchange. reference price at Dec. 31, 1999 was $25.60 per barrel versus $12.05 per barrel at year end 1998. The change in methodology in reporting shrinkage Shrinkage The amount by which inventory on hand is shorter than the amount of inventory recorded. Notes: The missing inventory could be due to theft, damage, or book keeping errors. in natural gas processing resulted in the decrease in gas volumes year over year offset by a corresponding increase in liquids volumes. The improved year end crude oil prices had a significant impact on the Company's year end reserve value. Using net cash flows of $1,794 million and a discount rate of 10%, the present value of proved reserves was $795.8 million. This represents a 195.5% increase over the $269.3 million reported at year end 1998. FINANCIAL RESULTS Operating results improved in 1999 when compared with 1998 due primarily to improved crude oil prices. The Company reported a loss of $30.7 million ($1.20 per share) for the year ended Dec. 31, 1999 as compared to a loss of $203.3 million ($7.94 per share) in 1998. Included in 1999 results are charges totaling $4.2 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc reorganization costs and tax penalties as well as a $5.4 million charge associated with Company's writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of all but the geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. and geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. costs associated with the Company's Tunisia Tunisia (t  nē`zhə, ty–), Fr. Tunisie, officially Republic of Tunisia, republic (2005 est. pop. , North
Africa concession. Financial results for 1998 included charges totaling
$188.0 million for the non-cash writedown of capitalized CapitalizedRecorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. costs due to the substantial decline in oil prices in 1998. For the three months ended Dec. 31, 1999, the Company reported a net loss of $893,000 ($0.04 per share) versus a net loss of $132.3 million ($5.16 per share) for the comparable period in 1998. 1998 fourth quarter results include a non-cash writedown of capitalized costs of $115.0 million. Capital expenditures during the year were $6.3 million compared with $70.1 million in 1998. This substantial reduction of capital costs was due largely to the Company limiting field activity in response to the low oil prices experienced in 1998 and early 1999, and due to cash flow constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. . As a result of the substantial reduction of field activity mentioned above, total net daily production fell to 10,350 BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip from 17,599 BOE per day in 1998. A portion of this decline is due in part to the sale of the Monroe Monroe. 1 Industrial city (1990 pop. 54,909), seat of Ouachita parish, SE La., on the Ouachita River; founded c.1785, inc. as a city 1900. The center of the great Monroe Natural Gas Field (discovered 1915), it has important chemical plants, as well as field gas properties in December December: see month. 1998, which contributed approximately 2,452 BOE per day during 1998. UPDATE ON PROPOSED PLAN OF REORGANIZATION On Nov. 30, 1999, the Company filed a plan of reorganization with the Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. . On Feb. 15, 2000, the Company and the Official Unsecured Creditors Unsecured Creditor An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because they have nothing to fall back on should the borrower default on the loan. A debenture holder is an unsecured creditor. Committee filed the First Amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and Restated Joint Plan of Reorganization with the Bankruptcy Court. At a hearing on Feb. 4, 2000, the Bankruptcy Court approved the Company's Disclosure Statement. In that hearing, the Bankruptcy Court also scheduled the confirmation hearing to consider the Plan of Reorganization for March 15, 2000. The Disclosure Statement and Plan of Reorganization were mailed to holders of interests in the Company's Chapter 11 filing for vote on Feb. 14, 2000. The Company has requested that all votes be submitted by March 10, 2000. In general, the proposed Plan of Reorganization provides for the following treatment: -- Senior secured debt (which includes principal, accrued interest and reasonable fees and expenses estimated at approximately $262 million) will receive full payment on the effective date of the Plan of Reorganization. -- 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 of Reorganization 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. In addition, holders of existing common stock on the record date of Feb. 29, 2000 will receive the right to purchase additional new common stock on a pro rata basis. If the $90 million rights offering is not fully subscribed by existing common stockholders, the Company intends to offer any unsubscribed shares in a private placement. A standby loan of up to $70 million is expected to be provided by several of the Company's bondholders if any portion of the rights offering remains unsubscribed. Under the terms of the standby loan, shares of new common stock will be issued to the standby loan lenders, which will result in the dilution of all holders of new common stock other than with respect to shares received in the rights offering. -- Other allowed general unsecured claims will receive cash payments in four quarterly installments, the first of which shall be paid 30 days from the effective date of the Plan of Reorganization. RIGHTS OFFERING The Company's Board of Directors has set the record date for the $90 million rights offering at March 6, 2000. Shareholders of record on that date will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to participate in the right to purchase additional new common stock on a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. basis. The rights offering remains conditional on the timely completion of the Securities and Exchange Commissions review of the Registration Statement (S-1) currently on file. For further information contact: Jeffrey Clarke Clarke , Arthur Charles Born 1917. British writer, scientist, and underwater explorer noted for his stories of space exploration. His works include 2001: A Space Odyssey (1968). , Chief Executive Officer or Anne Anne, British princess Anne (Anne Elizabeth Alice Louise), 1950–, British princess, only daughter of Queen Elizabeth II and Prince Philip, duke of Edinburgh. She was educated at Benenden School. Marie O'Gorman O'Gorman is a surname and may refer to: People
COHO ENERGY, INC.
SUMMARY OF FINANCIAL RESULTS
(In Thousands, Except Per Share Data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
1998 1999 1998 1999
---- ---- ---- ----
OIL PRODUCTION (BBL/D) 12,073 9,470 13,889 9,159
GAS PRODUCTION (MCF/D) 17,194 5,957 22,260 7,146
PRODUCTION (BOE/D) 14,939 10,463 17,599 10,350
Average Sales Price
$/BBL 8.88 20.53 10.40 15.40
$/MCF 1.91 2.71 1.98 2.24
OPERATING REVENUES
Net Oil and Gas Production $12,930 $19,366 $68,759 $57,323
-------- ------- ------- -------
OPERATING EXPENSES
Oil and Gas Production 5,193 5,018 23,475 18,218
Taxes on Oil and Gas Prod. 656 1,074 3,384 2,937
General and Administrative 2,998 2,331 7,750 9,905
Allowance for Bad Debt 894 -- 894 --
Unsuccessful Transactin Costs 2,129 -- 2,129 --
LA State Income Tax penalty -- -- -- 1,048
Depletion and Depreciation 5,900 3,489 28,135 13,702
Writedown 115,000 -- 188,000 5,433
------- ------- ------- -------
TOTAL OPERATING EXPENSES 132,770 11,912 253,767 51,243
NET INTEREST EXPENSE 8,377 7,909 32,721 33,698
REORGANIZATION COSTS -- 438 -- 3,123
INCOME TAX EXPENSE (BENEFIT) 4,049 -- (14,383) (26)
-------- ------- ------- -------
NET EARNINGS (LOSS) $(132,266) $ (893) $(203,346)$(30,715)
======= ======= ======= =======
BASIC EARNINGS (LOSS) PER
COMMON SHARE $ (5.17) $ (0.04) $ (7.94) $ (1.20)
======= ======= ======= =======
CASH FLOW FROM OPERATING
ACTIVITIES $(10,249) $ 2,590 $(3,949) $(10,901)
CASH FLOW PER COMMON SHARE $(0.40) $ 0.10 $ (0.15) $ (0.43)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES 25,604 25,604 25,604 25,604
COHO ENERGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
DECEMBER 31
(In Thousands)
1998 1999
---- ----
ASSETS
Current Assets 19,314 31,469
Property and Equipment 324,574 311,788
Other 6,180 5,544
-------- --------
$350,068 $348,801
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities 407,611 15,220
Liabilities Subject to Compromise -- 421,839
Long Term Debt -- --
Deferred Income Taxes -- --
Commitments and Contingencies 3,700 3,700
-------- --------
411,311 440,759
Shareholders' Equity (61,243) (91,958)
-------- --------
$350,068 $348,801
======== ========
Common Shares Outstanding 25,604 25,604
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion