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Costilla Granted Another Stay

Costilla Granted Another Stay

Costilla Energy Inc. of Midland, TX, got another reprieve on its debt repayment when its bank credit facility was amended providing for an extension of the $10.2 million principal payment until June 18. The payment was due yesterday after a previous extension. The independent oil and gas company is in the process of divesting its Rocky Mountain oil and gas properties.

Costilla has operations primarily in the Gulf Coast region of South Texas and the Permian Basin of West Texas and southeastern New Mexico.

Late last month the company said it expected to announce soon the execution of purchase and sale agreements for divestiture of the Rocky Mountain properties. The company is ending its activities in the Rockies to focus its attentions where it has been more successful.

Costilla had negative first quarter cash flow of $1.5 million, or $0.12 per share, the company recorded a net loss applicable to common equity of $55.9 million, or $4.36 per share. That included an expense of $47.5 million related to termination of a deal to acquire assets from Pioneer Natural Resources.

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