The Dallas-based investment firm, Hicks, Muse, Tate & Furst,announced it was picking up a significant interest in TritonEnergy, the second major investment in an oil and gas E&Pcompany Hicks Muse has made in the last week.

Hicks Muse said it will invest approximately $350 million inTriton, which also is headquartered in Dallas. A week ago the firmsaid it was acquiring a majority stake in another Dallas-basedindependent producer, Coho Energy, for about $250 million. The twopurchases are the investment firm’s first venture into the oil andgas business. “Since its formation in 1989, Hicks, Muse, Tate &Furst Inc. has completed or currently has pending more than 230transactions with a total capital value in excess of $30 billion,”a press release said. Up until the past week its investments hadbeen primarily in the radio and television business.

“With the current depressed market prices of energy assets, webelieve that this is a favorable time to make an investment of thisnature,” said Thomas O. Hicks, chairman and CEO of the investmentfirm. “Triton Energy in particular has assembled an outstandinggroup of world-class assets, and with this investment, Triton willbe very well capitalized to take advantage of additionalacquisition opportunities that may emerge. We now have in placeanother strong platform from which to implement our buy-and-buildstrategy in oil and gas.”

Triton Energy’s common stock price dropped from $40+ to under$20 a share in July after the company reported a second quarterloss of $150 million due to an after-tax charge of $141.1 million(non-cash). Included in the charge was $72.6 million related to adecision to discontinue and write-off exploration activities incertain countries and a $68.5 million full cost ceiling limitationtest write-down (oil price related) of the company’s Colombianassets. A number of shareholder lawsuits have been filed, claimingthe company misrepresented the value of its assets and prospects.The share price fell Monday along with the rest of market, endingthe day at $11.50.

The Hicks Muse investment in Triton involves a several stepprocess including purchase of convertible preferred shares and fourseats on the 10-person board of directors.

Coho Energy also has seen a decline with assets affected by thelower oil price. That company’s stock has gone from $13 lastNovember to $4.50 Monday. Hicks Muse will own approximately 62% ofCoho shares.

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