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HONDO OIL AND GAS ENTERS AGREEMENT TO SELL FLETCHER

 ROSWELL, N.M., Sept. 17 /PRNewswire/ -- Hondo Oil and Gas Co. (AMEX: HOG) announced today that it has entered into an agreement to sell the stock of its wholly owned subsidiary, Fletcher Oil and Refining Co.
 The company expects to receive approximately $2.5 million under the agreement, including $1 million at the closing, $600,000 shortly thereafter, and a part of the proceeds from the sale of certain refinery process equipment. The company expects to record a book loss of approximately $6.5 million on the sale of these assets, that have been carried as discontinued operations on the company's financial statements and held for sale for over two years.
 Fletcher suspended operations in December 1991, then operated under a processing arrangement for six months in 1992, and again shut down operations in October 1992. The property will continue to be operated as a terminal by its new owner.
 Robert O. Anderson, chairman, said, "We are pleased to have concluded our efforts to sell the Fletcher refinery. This means that the company will no longer be exposed to continuing cash outflows to Fletcher. We will be able to focus all our attention on operations in Colombia and elsewhere."
 -0- 9/17/93
 /CONTACT: C.B. McDaniel, 505-625-8700/
 (HOG)


CO: Hondo Oil & Gas Co.; Fletcher Oil and Refining Co. ST: New Mexico IN: OIL SU:

NY-LS -- LA033 -- 3285 09/17/93 19:08 EDT
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Publication:PR Newswire
Date:Sep 17, 1993
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