Coho Energy to Acquire Oklahoma Oil Assets from Amoco.

DALLAS--(BUSINESS WIRE)--Dec. 1, 1997--Coho Energy, Inc. (Nasdaq:COHO) today announced that it has entered into a definitive agreement with Amoco Production Company, a subsidiary of Amoco Corp. (NYSE:AN), to acquire certain producing oil and gas properties located in Oklahoma for $257.5 million and warrants to purchase, for a period of five years, one million common shares of Coho at $10.425, the ten day average closing price prior to execution of the agreement.

The transaction will be effective Dec. 1, 1997, is expected to close on or before Jan. 7, 1998 and is subject to customary post-closing adjustments as well as preferential rights on certain properties.

Coho will acquire interests in more than 25,000 gross acres concentrated in Southern Oklahoma, including 14 principal producing fields. Amoco operates all but two of these fields and has an average working interest in these fields of approximately 65%. Coho's independent engineers have estimated that the properties being acquired had net proven reserves of 55.1 million equivalent barrels, approximately 90% of which was oil. Coho believes the properties also have significant unproved but identified reserves associated with proposed exploitation projects. In addition, the properties are believed to have the same magnitude of upside potential from projects in the early evaluation stage and numerous other exploitation opportunities.

Daily net production from the properties during September 1997 was approximately 6,200 barrels of oil and 7.7 million cubic feet of natural gas, or almost 7,500 equivalent barrels of oil, which will make Coho the largest crude oil producer in Oklahoma. Coho is already the largest producer in Mississippi. The properties currently contain 722 producing wells. Coho anticipates hiring certain Amoco personnel from Amoco's Ratliff City Oklahoma Operations Center.

The company intends to fund the Amoco acquisition through working capital from its recent equity offering and drawdowns on its bank credit lines which is expected to be $300 million.

Jeffrey Clarke, Coho's president and CEO, stated, "The Amoco property acquisition represents a tremendous opportunity for Coho and will add a second major focus area to its successful Mississippi salt basin operations. These properties have characteristics remarkably similar to our existing fields and fit extremely well with our operating, engineering and technical expertise: geographically concentrated properties with multiple productive formations, long-lived reserves, secondary recovery projects, numerous exploitation opportunities and substantial low-risk reserve potential. Through active field management, we believe that we can quickly reduce the properties' reserve life index, which is currently about 20 years, and add substantially to reserves and production. Coho is well positioned to capitalize on this opportunity both from a management and financial perspective. We expanded our technical staff over the last 12 months and can quickly launch an aggressive exploitation program while maintaining the momentum in our exciting Mississippi projects."

"The Amoco properties should have a very favorable impact on Coho," Clarke continued. "Reserves and production will increase by 103% and 62.5%, respectively, and the transaction is expected to be accretive to per share cash flow, reserves and asset value. Most importantly, we believe that the Amoco properties will allow the company to grow even more rapidly and, at the same time, add geographic and operating diversity."

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

CONTACT: Coho Energy, Inc., Dallas

Jeffrey Clarke/Anne Marie O'Gorman, 972/774-8300