Sole Energy Company Announces Two Judgments.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Jan. 9, 2003

Sole Energy Company, a Houston-based independent petroleum and natural gas Company, announced today that a judgment in the amount of $27,015,416.29, plus prejudgment interest and costs, was signed and entered into Orange County Superior Court, California. The judgment is in favor of Sole Energy Company in the matter of Sole Energy Company et al vs. Morris V. Hodges, Hillcrest Beverly Oil Corporation (HBOC), Kaymor Petroleum Products, HBOC Energy Marketing and Nevadacor Energy. Mr. Morris V. Hodges is the principal shareholder of the closely held, private corporations that are liable for the judgment amount. HBOC and the affiliated companies are oil and gas production and marketing companies with offices in Foothill Ranch, Calif. The companies' primary businesses are in Southern California. The judgment amounts include $17,015,416.29 for compensatory damages and $10,000,000 for punitive damages, in addition to prejudgment interest of approximately $7,053,610.84 and costs.

In a separate order, The Honorable Judge William M. Monroe also ruled that the defendants shall not stay the collection of the judgment pending the appeal unless one and one-half of the judgment amounts, approximately $51 million, is posted as a bond during the appeals process.

In a related matter, Sole Energy Company announced that another judgment in the amount of $20,902,416 was signed and entered into Orange County Superior Court, California. The judgment is in favor of Sole Energy Company in the matter of Sole Energy Company et al vs. Petrominerals Corporation and Daniel H. Silverman. Petrominerals is a publicly traded oil and gas company with offices in San Clemente, Calif. The company's stock is traded over the counter under the stock symbol of PTRO.OB. Daniel H. Silverman is a resident of Houston, Texas

Following a four-week trial by a jury, Petrominerals and Daniel H. Silverman were found liable for the following causes of action by a unanimous jury vote of 12-0:

    1) Interference with contractual relations;

    2) Interference with prospective business advantage and;

    In addition, Petrominerals was found guilty of Fraud by a
unanimous jury vote of 12-0.

The judgment is comprised of $17,892,416 as compensatory damages and $3,010,000 as punitive damages arising out of fraud, oppression and malice.

Nicholas Hornberger, a prominent Los Angeles litigator, was lead counsel on behalf of plaintiffs. Mr. Hornberger stated that the jury was clearly outraged at the action of the defendants. "These self-serving actions by public corporate officers cannot be tolerated."

Mr. Thomas R. Swaney, CEO of Sole Energy Company, issued the following statement: "We are pleased with the outcome of the proceedings. By voting unanimously in our favor in this matter, the jury has sent a message to corporate officers that this type of conduct is absolutely not permissible. We hope that we can now move forward with the pursuit of our objectives." Lottie Cohen, a Los Angeles collection attorney, was retained as co-counsel to litigate the post-judgment collection issues.