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
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
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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