Costilla Energy Inc. of Midland, TX, got another reprieve on itsdebt repayment when its bank credit facility was amended providingfor an extension of the $10.2 million principal payment until June18. The payment was due yesterday after a previous extension. Theindependent oil and gas company is in the process of divesting itsRocky Mountain oil and gas properties.
Costilla has operations primarily in the Gulf Coast region ofSouth Texas and the Permian Basin of West Texas and southeasternNew Mexico.
Late last month the company said it expected to announce soonthe execution of purchase and sale agreements for divestiture ofthe Rocky Mountain properties. The company is ending its activitiesin the Rockies to focus its attentions where it has been moresuccessful.
Costilla had negative first quarter cash flow of $1.5 million,or $0.12 per share, the company recorded a net loss applicable tocommon equity of $55.9 million, or $4.36 per share. That includedan expense of $47.5 million related to termination of a deal toacquire assets from Pioneer Natural Resources.
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