Coho Energy To Sell Its Mississippi Properties
Coho Energy, Inc. has entered into a letter of intent for the sale of its Mississippi oil and gas assets to an undisclosed third party for an aggregate cash purchase price of $80 million.
The proposed sale is subject to the ability of the purchaser to obtain financing for the transaction and other customary conditions to close an asset sale, including the execution of a definitive agreement, all of which is currently scheduled to be finalized by mid-October. The Mississippi properties, which are located primarily in the Brookhaven, Laurel, Martinville and Soso fields, produced 4,725 BOE/day for the quarter ended December 31, 2000 and 5,205 BOE/day for the quarter ended June 30, 2001. At December 31, 2001, the Mississippi properties contained an aggregate total of 30,035 MBOE (equivalent barrels of oil per day) of net proved reserves, representing approximately 30% of the Company's net proved reserves and approximately 42% of the Company's net revenues. The Company anticipates all proceeds will be used to reduce borrowings under its senior revolving credit facility. Currently, the Company has borrowing of $195 million outstanding under its senior credit facility.