KELLEY OIL CORPORATION ANNOUNCES PROPOSED SETTLEMENT OF THREE LAWSUITS ON PLANNED CONSOLIDATION.HOUSTON--(BUSINESS WIRE)--Nov. 7, 1994--KELLEY OIL CORPORATION (Nasdaq NM:KOIL) ("Kelley Oil") announced today that it has entered into a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. with the plaintiffs in three previously announced lawsuits against Kelley Oil and its directors involving its planned consolidation with Kelley Oil & Gas Partners, Ltd. (AMEX AMEX See: American Stock Exchange :KLY) ("Kelley Partners") and Kelley Partners' exchange offer for interests in an affiliated drilling partnership. The memorandum of understanding provides for a proposed settlement of the lawsuits based on the terms of the revised consolidation proposal recently announced by Kelley Oil following negotiations with a special committee of its nonmanagement directors. The proposed settlement is subject to court approval and various other conditions. While Kelley Oil believes that its directors have faithfully and equitably discharged their duties in these matters, it has entered into the memorandum of understanding to minimize litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. expenses and remove a potential obstacle to the consolidation. The memorandum of understanding does not include the plaintiff in a separate lawsuit involving the same subject matter. Kelley Oil believes that the remaining lawsuit is without merit and intends to vigorously contest it. Kelley Partners is a publicly traded partnership Publicly Traded Partnership A limited partnership that also has interests traded in the equity securities market. Notes: This is also known as a master limited partnership. See also: Master Limited Partnership, Partnership, Public Company with oil and gas properties located primarily in Louisiana. Kelley Oil is the managing general partner of Kelley Partners and separate drilling partnerships in which it owns controlling interests. Units in Kelley Partners are traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. under the symbol KLY. Common and Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of Kelley Oil are traded on the Nasdaq National Market under the symbols KOIL and KOILP. CONTACT: Kelley Oil Corporation
Bromley DeMeritt, Executive Vice President
212/838-6070 or 713/652-5200
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