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EDISTO ANNOUNCES OVERALL DIRECTION OF THE COMPANY AND ACTION TAKEN TO STRENGTHEN ITS FINANCIAL POSITION

 DALLAS, Nov. 1 /PRNewswire/ -- Edisto Resources Corporation (AMEX: EDS) today announced that it has determined to concentrate its efforts on the development of its domestic reserves and the expansion of gas marketing and transmission activities, and to sell certain non-core assets unrelated to these businesses. Edisto also announced placement of a new credit facility that will provide Edisto with greater flexibility in pursuing its newly defined business plan.
 Following the reorganization of Edisto in June 1993, its newly elected chairman of the board and chief executive officer, Michael Y. McGovern, initiated an extensive examination of Edisto's assets, operations and personnel to determine an appropriate strategy to maximize shareholder value. The announcements today follow completion of this examination.
 Edisto has determined to increase its domestic oil and gas reserves through the development of its existing properties, which are primarily located in the Gulf of Mexico, and through acquisition of additional domestic properties or companies. In order to discontinue international activities, Edisto has sold its interest in offshore Malaysia and onshore Tunisia properties and is actively pursuing the sale of its offshore Tunisian properties.
 With respect to gas marketing and transmission activities, Edisto intends to further the development and growth of its gas marketing program and pipeline facilities by increasing its market share of the midwest markets, pursuing acquisitions of gas marketing companies, and by maximizing the potential of its 214-mile intrastate pipeline system in central Missouri.
 Edisto has placed Multiflex International, Inc., a non-core subsidiary, on the market for sale. Edisto acquired an 80 percent common equity interest of Multiflex in March 1990. Multiflex is a manufacturer and supplier of hose bundles and subsea well control umbilicals. Multiflex is considered the leader in the installation and servicing of high-pressure hose umbilicals used in offshore oil and gas exploration and production activities.
 Edisto Exploration & Production Company closed a $30 million reducing revolving line of credit with Bank One, Texas, N.A. on Oct. 28, 1993. The terms of the agreement include an initial borrowing base of $16 million with an interest rate of Bank One's base rate plus 3/4 percent. The borrowing base is to be determined at least semi-annually by Bank One pursuant to a review of Edisto's oil and gas reserves. Edisto used the funds from this line of credit to retire the existing debt of $9.3 million with Chemical Bank and the facility will be available to fund the development of its reserves, to expand its transportation operations and gas marketing activities, and to pursue acquisition opportunities.
 Edisto Resources Corporation's consolidated activities include the production of oil and gas, the exploration and development of oil and gas reserves and natural gas marketing and transportation.
 -0- 11/1/93
 /CONTACT: Gary L. Pittman, vice president of Edisto Resource Corporation, 214-880-0243/
 (EDS)


CO: Edisto Resources Corporation ST: Texas IN: OIL SU:

TW -- NY030 -- 9051 11/01/93 10:25 EST
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Publication:PR Newswire
Date:Nov 1, 1993
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