<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 29, 2000
- --------------------------------------------------------------------------------
Date of Report (Date of earliest event reported)
COSTILLA ENERGY, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its character)
<TABLE>
<S> <C> <C>
Delaware 0-21411 75-2658940
- --------------------------------------------------------------------------------------------------
(State or other jurisdiction) (Commission File Number) (IRS Employer Identification No.)
</TABLE>
400 West Illinois, Suite 1000
Midland, Texas 79701
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(915) 683-3902
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
N/A
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
Page 1 of 2
<PAGE> 2
ITEM 5. OTHER EVENTS
On February 29, 2000, Costilla Energy, Inc. (the "Company") filed a
Disclosure Statement in its bankruptcy proceeding styled In re: Costilla Energy,
Inc., Case No. 99-70653 in the United States Bankruptcy Court for the Western
District of Texas, Midland Division. The Disclosure Statement, which is subject
to the approval of the Bankruptcy Court, describes the Company's plan of
reorganization and contains certain information about the Company's business
operations and oil and gas properties, including unaudited financial data for
the year ended December 31, 1999 and reserve estimates as of January 1, 2000. A
copy of the Company's Monthly Operating Report, which was previously filed with
the Bankruptcy Court and includes unaudited financial data for the period
September 3, 1999 through December 31, 1999, is attached hereto as Exhibit 99.1.
The Company issued a press release regarding the foregoing on March 2,
2000, a copy of which is attached hereto as Exhibit 99.2 and incorporated herein
by reference.
ITEM 7. FINANCIAL STATEMENT, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99.1 Monthly Operating Report for period ended December 31, 1999
99.2 Press Release issued March 2, 2000
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COSTILLA ENERGY, INC.
Dated: March 2, 2000 By: /s/ BOBBY W. PAGE
----------------------------------------
Bobby W. Page, Senior Vice President and
Chief Financial Officer
Page 2 of 2
<PAGE> 3
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
99.1 Monthly Operating Report for period ended December 31, 1999
99.2 Press Release issued March 2, 2000
</TABLE>
<PAGE> 1
EXHIBIT 99.1
MOR-1 UNITED STATES BANKRUPTCY COURT
CASE NAME: Costilla Energy, Inc. PETITION DATE: 9/3/99 0:00
CASE NUMBER: 99-70653-K DISTRICT OF TEXAS: Western
PROPOSED PLAN DATE: February 11, 2000 DIVISION: Midland
MONTHLY OPERATING REPORT SUMMARY FOR DECEMBER 1999
<TABLE>
<CAPTION>1
================================================================================================================================
MONTH September October November December
- ----- --------- ------- -------- --------
<S> <C> <C> <C> <C>
REVENUES (MOR-6) 3,735,769.00 3,484,779.00 4,565,654.00 3,377,622.00
INCOME BEFORE INT; DEPREC./TAX (MOR-6) 2,215,767.00 1,599,506.00 2,710,479.00 1,906,463.38
NET INCOME (LOSS) (MOR-6) -551,068.00 84,733.62 159,679.00 -8,238,273.62
PAYMENTS TO INSIDERS (MOR-9) 103,697.16 100,844.23 100,848.31 110,126.62
PAYMENTS TO PROFESSIONALS (MOR-9) 0.00 61,000.00 54,719.91 264,667.55
TOTAL DISBURSEMENTS (MOR-8) 2,322,396.16 3,242,472.40 3,610,041.00 4,355,837.00
================================================================================================================================
<CAPTION>
===============================================================================
MONTH
- -----
<S> <C> <C>
REVENUES (MOR-6) 0.00 0.00
INCOME BEFORE INT; DEPREC./TAX (MOR-6) 0.00 0.00
NET INCOME (LOSS) (MOR-6) 0.00 0.00
PAYMENTS TO INSIDERS (MOR-9) 0.00 0.00
PAYMENTS TO PROFESSIONALS (MOR-9) 0.00 0.00
TOTAL DISBURSEMENTS (MOR-8) 0.00 0.00
===============================================================================
</TABLE>
***The original of this document must be filed with the United States Bankruptcy
Court and a copy must be sent to the United States Trustee***
<TABLE>
<CAPTION>
<S> <C>
REQUIRED INSURANCE MAINTAINED EXP.
AS OF SIGNATURE DATE DATE
- ----------------------------- -----------
CASUALTY YES (X) NO ( ) 08-10-2000
LIABILITY YES (X) NO ( ) 08-10-2000
VEHICLE YES (X) NO ( ) 08-10-2000
WORKER'S YES (X) NO ( ) 08-10-2000
OTHER YES ( ) NO ( ) - -
ATTORNEY NAME: Henry J. Kiam
FIRM NAME: Sheinfeld, Maley & Kay, P.C.
ADDRESS: 1001 Fannin Street, Suite 3700
CITY, STATE, ZIP:Houston, Texas 77002
TELEPHONE: (713) 658-8881
MOR-1
<CAPTION>
CIRCLE ONE
<C> <C> <C>
Are all accounts receivable being collected within terms? YES NO
Are all post-petition liabilities, including taxes, being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe Revenue Interest Owners paid by Court order dated 9/23/99;
Outside Operators paid by Court order dated 12/1/99.
Are all funds received being deposited into DIP bank accounts? YES NO per Court Order
Were any assets disposed of outside the normal course of business? YES NO
If so, describe ______________________________________________________________________________________________________
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? The Company intends to file a Plan of
Reorganization by February 11, 2000.
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED X TITLE:
---------------------------- ----------------------
(ORIGINAL SIGNATURE)
Bobby W. Page
-------------------------------------- -----------------------
(PRINT NAME OF SIGNATORY)
</TABLE>
<PAGE> 2
CASE NAME: Costilla Energy, Inc.
CASE NUMBER: 99-70653-K
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS
------------------------------
ASSETS FILING DATE* MONTH MONTH MONTH MONTH
SEPT 3, 1999 SEPTEMBER OCTOBER NOVEMBER DECEMBER MONTH
------------ ---------- -------- --------- --------- -----
CURRENT ASSETS
<S> <C> <C> <C> <C> <C> <C>
Cash 3,148,430 3,896,323 9,242,370 11,310,200 12,856,120
Accounts Receivable, Net 11,646,517 13,690,545 9,145,771 8,713,313 8,110,030
Inventory: Lower of Cost or Market
Prepaid Expenses
Investments
Other Cafeteria Plan (Cash) 1,663 2,567 1,637
------------ ------------ ----------- ------------ ------------
TOTAL CURRENT ASSETS 14,794,947 17,586,868 18,389,804 20,026,080 20,967,787 0.00
============ ============ =========== ============ ============
PROPERTY, PLANT & EQUIP. @ COST 5,050,049 5,055,086 5,051,109 5,047,951 5,047,951
Less Accumulated Depreciation 2,334,540 2,413,290 2,496,819 2,573,582 2,654,293
NET BOOK VALUE OF PP & E 2,715,509 2,641,796 2,554,290 2,474,368 2,393,658 0.00
OTHER ASSETS
1. Oil & Gas Properties 87,722,577 86,315,831 85,475,394 83,293,463 74,734,988
2. Investments in Subsidiaries
3. Security Deposits 10,570 10,570 10,570 10,570 10,570
4. Accruals/Deferred Charges** 16,906,437 17,900,799 18,351,661 17,681,221
------------ ------------ ----------- ------------ ------------ ------
TOTAL ASSETS $105,243,602 $123,461,501 124,330,857 $124,156,142 $115,788,224 $ 0.00
============ ============ =========== ============ ============ ======
</TABLE>
* Per Schedules and Statement of Affairs
MOR-2
** Not Included on Schedules
<PAGE> 3
CASE NAME: Costilla Energy, Inc.
CASE NUMBER: 99-70653-K
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS
------------------------------
LIABILITIES & OWNER'S FILING DATE* MONTH MONTH MONTH MONTH
EQUITY SEPT 3, 1999 SEPTEMBER OCTOBER NOVEMBER DECEMBER MONTH
------------ ---------- -------- --------- --------- -----
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES
POST-PETITION LIABILITIES(MOR-4) 1,938,746 3,365,960 4,167,232 4,205,098
============= ============= ============= =============
PRE-PETITION LIABILITIES
Notes Payable - Secured 49,279,578 47,588,673 47,435,542 47,384,519 47,384,519
Priority Debt 12,735 12,735 12,735 12,735 12,735
Federal Income Tax
FICA/Withholding
Unsecured Debt(1) 188,097,351 188,097,351 188,097,351 195,887,350 195,562,026
-------------- ------------- ------------- ------------- -------------
TOTAL PRE-PETITION LIABILITIES 237,389,664 235,698,759 235,545,628 243,284,604 242,959,280 0
-------------- ------------- ------------- ------------- -------------
**Other Accruals (1)(2) 13,002,277 12,512,816 3,638,174 3,795,988 0
------------- ------------- ------------- -------------
TOTAL LIABILITIES 237,389,664 250,639,782 251,424,404 251,090,010 250,960,366 0
============== ============= ============= ============= =============
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK 5,000 5,000 5,000 5,000 5,000
COMMON STOCK 1,410,158 1,410,158 1,410,158 1,410,158 1,410,158
ADDITIONAL PAID-IN CAPITAL*** 96,030,694 96,030,694 96,030,694 96,030,694 96,030,694
RETAINED EARNINGS: Filing Date (2) -229,591,914 -224,073,065 -224,624,133 -224,539,399 -224,379,720
RETAINED EARNINGS: Post Filing Date -551,068 84,734 159,679 -8,238,274
-------------- ------------- ------------- ------------- -------------
TOTAL OWNER'S EQUITY (NET WORTH) -132,146,062 -127,178,281 -127,093,547 -126,933,868 -135,172,142 0
============== ============= ============= ============= =============
TOTAL LIABILITIES & OWNERS EQUITY $ 105,243,602 $ 123,461,501 $ 124,330,857 124,156,142 115,788,224 0
============== ============= ============= ============= =============
</TABLE>
<TABLE>
<S> <C> <C>
* Per Schedules and Statement of Affairs
MOR-3 ** Accrued liabilities not listed on Schedules.
*** Includes adjustment for Treasury Stock
Schedules/November MOR corrected: (1) November includes $188,097,351 per Schedules and Statement of Affairs and $7,789,999
of pre-petition accrued interest on the 10.25% Senior Notes. The Schedules will be
amended to reflect the pre-petition interest of $7,789,999 as Unsecured Debt,
reclassified from Other Accruals.
September/October MOR corrected: (2) The Schedules reflect a judgement on a lawsuit of $5.5 million, which is on appeal
and is not reflected on the books and records of the Debtor. The $5.5 million has been
reclassified from a reduction in Other Accruals to a reduction in Retained Earnings.
(3) Payments have been made to Outside Operators pursuant to Court Order dated 12/1/99.
Pre-petition Debt will be updated in Amendments.
</TABLE>
<PAGE> 4
CASE NAME: Costilla Energy, Inc.
CASE NUMBER: 99-70653-K
SCHEDULE OF POST-PETITION LIABILITIES
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
SEPTEMBER OCTOBER NOVEMBER DECEMBER MONTH MONTH
--------- ------- -------- -------- ----- ------
<S> <C> <C> <C> <C> <C> <C>
TRADE ACCOUNTS PAYABLE 38,504.26 853,424 970,725 482,762
TAX PAYABLE
Federal Payroll Taxes 16.40
State Payroll Taxes 24.13
Ad Valorem Taxes 703,215 927,679
Other Taxes
TOTAL TAXES PAYABLE 40.53 0 703,215 927,679 0.00 0.00
SECURED DEBT POST-PETITION** 117,694
ACCRUED INTEREST PAYABLE 389,838.00 683,753 720,927 967,915
ACCRUED PROFESSIONAL FEES* 231,233 305,846 219,736
OTHER ACCRUED LIABILITIES
1. Undistributed Royalty & Interest Owner 1,510,363.00 1,597,550 1,466,519 1,489,312
2.
3.
------------- ---------- ---------- ---------- ---------- ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) $1,938,745.79 $3,365,960 $4,167,232 $4,205,098 $ 0.00 $ 0.00
============= ========== ========== ========== ========== =========
</TABLE>
* Payment requires Court Approval
MOR-4
** Post-Petition increase in Revenue Interest Owner Suspense Account.
<PAGE> 5
CASE NAME: Costilla Energy, Inc.
CASE NUMBER: 99-70653-K
AGING OF POST-PETITION LIABILITIES
MONTH DECEMBER
<TABLE>
<CAPTION>
TRADE FEDERAL STATE AD VALOREM,
DAYS TOTAL ACCOUNTS TAXES TAXES OTHER TAXES OTHER
- ---- ----- -------- ------- ------- ------------ -----
<S> <C> <C> <C> <C> <C> <C>
0-30 463,284 238,821 224,463
31-60 947,156 243,941 703,215
61-90 0
91+ 0
--------- ------- ------------
TOTAL 1,410,440 482,762 0 0 927,678 0
========= ======= ============
</TABLE>
AGING OF ACCOUNTS RECEIVABLE
<TABLE>
<CAPTION>
MONTH September October November December
- ----- --------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
0-30 DAYS 12,235,600 7,785,723 7,093,947 6,924,340
31-60 DAYS 94,085 117,810 352,780 352,900
61-90 DAYS 124,580 -13,438 112,109 189,320
91+ DAYS 1,236,279 1,255,676 1,154,477 643,470
---------- --------- --------- ---------
TOTAL 13,690,545 9,145,771 8,713,313 8,110,030 0 0
========== ========= ========= =========
</TABLE>
MOR-5
<PAGE> 6
CASE NAME: Costilla Energy, Inc.
CASE NUMBER: 99-70653-K
<TABLE>
<CAPTION>
STATEMENT OF INCOME (LOSS)
MONTH MONTH MONTH MONTH FILING TO
SEPTEMBER OCTOBER NOVEMBER DECEMBER MONTH MONTH DATE
--------- ------- -------- -------- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES (MOR-1) 3,735,769 3,484,779 4,565,654 3,377,622 15,163,824
TOTAL COST OF REVENUES 0
---------- ---------- ---------- ---------- --------- --------- ------------
GROSS PROFIT 3,735,769 3,484,779 4,565,654 3,377,622 0 0 15,163,824
========== ========== ========== ========== ========= ========= ============
OPERATING EXPENSES:
Lease Operating Expense 1,067,544 1,208,151 1,199,190 1,053,372 4,528,257
General & Administrative 348,761 345,045 372,304 251,017 1,317,127
Insiders Compensation 103,697 100,844 100,848 110,127 415,516
Professional Fees 231,233 182,833 56,643 470,709
Other 0
Other 0
---------- ---------- ---------- ---------- --------- --------- ------------
TOTAL OPERATING EXPENSES 1,520,002 1,885,273 1,855,175 1,471,159 0 0 6,731,609
========== ========== ========== ========== ========= ========= ============
INCOME BEFORE INT, DEPR/TAX (MOR-1) 2,215,767 1,599,506 2,710,479 1,906,463 0 0 8,432,215
INTEREST EXPENSE 389,838 293,915 288,662 299,675 1,272,090
DEPRECIATION 908,528 1,206,898 1,158,130 1,377,261 4,650,817
OTHER (INCOME) EXPENSE* 1,468,469 13,959 1,104,008 8,467,801 11,054,237
OTHER ITEMS** 0
---------- ---------- ---------- ---------- --------- --------- ------------
TOTAL INT, DEPR & OTHER ITEMS 2,766,835 1,514,772 2,550,800 10,144,737 0 0 16,977,144
========== ========== ========== ========== ========= ========= ============
NET INCOME BEFORE TAXES -551,068 84,734 159,679 -8,238,274 0 0 -8,544,929
FEDERAL INCOME TAXES 0
NET INCOME (LOSS) (MOR-1) -551,068 84,734 159,679 -8,238,274 0 0 -8,544,929
</TABLE>
Accrual Accounting Required, Otherwise Footnote with Explanation.
* Footnote Mandatory.
** Unusual and/or infrequent item(s) outside the ordinary course of business
requires footnote.
<TABLE>
<S> <C> <C> <C> <C>
* EXPLORATION & ABANDONMENTS 180,498 2,751 1,104,008 6,712,038
IMPAIRMENT OF ASSETS 943,201 1,755,763
LOSS ON COMMODITY TRANSACTIONS 400,106 11,208
LOSS ON PURCHASE OPTION (55,336)
MOR-6 1,468,469 13,959 1,104,008 8,467,801
</TABLE>
<PAGE> 7
CASE NAME: Costilla Energy, Inc.
CASE NUMBER: 99-70653-K
<TABLE>
<CAPTION>
CASH RECEIPTS AND MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS September October November December MONTH DATE
--------- --------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
1. CASH-BEGINNING OF MONTH $3,148,430 $3,896,323 $9,244,040 $11,312,659 $12,857,757 $ 3,148,430
---------- ---------- ----------- ----------- ----------- -----------
RECEIPTS:
2. CASH SALES $ 0
3. COLLECTION OF ACCOUNTS RECEIVABLE 3,070,290 8,565,218 5,642,943 5,857,988 $23,136,438
4. LOANS & ADVANCES (attach list) $ 0
5. SALE OF ASSETS $ 0
6. OTHER (attach list) Interest 24,971 35,717 42,948.18 $ 103,636
---------- ---------- ----------- ----------- ----------- -----------
TOTAL RECEIPTS** 3,070,290 8,590,189 5,678,660 5,900,936 0.00 $23,240,074
---------- ---------- ----------- ----------- ----------- -----------
(Withdrawal) Contribution by Individual
Debtor MFR-2* $0
DISBURSEMENTS:
7. NET PAYROLL 252,148 317,344 297,679 232,681 $ 1,099,853
8. PAYROLL TAXES PAID 97,206 117,357 110,101 75,704 $ 400,368
9. SALES, USE & OTHER TAXES PAID 17,391 250,000 266,450 236,278 $ 770,119
10. SECURED/RENTAL/LEASES 24,535 36,575 26,295 25,000 $ 112,405
11. UTILITIES & TELEPHONE 14,675 36,715 21,214 $ 72,604
12. INSURANCE 40,310 144,000 78,000 115,000 $ 377,310
13. OIL & GAS OPERATIONS 138,003 418,000 847,000 1,279,000 $ 2,682,003
14. REVENUE INTEREST OWNERS 1,616,103 1,558,000 1,597,550 1,449,832 $ 6,221,485
15. CONTRACT LABOR & PUMPERS 81,506 80,000 80,000 $ 241,506
16. EMPLOYEE BENEFITS & DEDUCTIONS 15,788 22,925 22,619 $ 61,332
17. MISCELLANEOUS 12,801 7,379 12,479 $ 32,659
18. OTHER (attach list) 176,607 311,032 562,576 $ 1,050,215
---------- ---------- ----------- ----------- ----------- -----------
TOTAL DISBURSEMENTS FROM OPERATIONS 2,310,467 3,164,902 3,555,321 4,091,169 0.00 $13,121,859
19. PROFESSIONAL FEES 61,000 54,720 264,668 $ 380,388
20. U.S. TRUSTEE FEES 7,500 $ 7,500
21. OTHER REORGANIZATION EXPENSES (attach list) 11,930 9,070 $ 21,000
---------- ---------- ----------- ----------- ----------- -----------
TOTAL DISBURSEMENTS** 2,322,396 3,242,472 3,610,041 4,355,837 0 $13,530,747
---------- ---------- ----------- ----------- ----------- -----------
22. NET CASH FLOW 747,894 5,347,717 2,068,619 1,545,099 0 $ 9,709,328
---------- ---------- ----------- ----------- ----------- -----------
23. CASH - END OF MONTH (MOR-2) $3,896,323 $9,244,040 $11,312,659 $12,857,757 $12,857,757 $12,857,757
========== ========== =========== =========== =========== ===========
</TABLE>
* Applies to Individual debtors only
MOR-7 ** Numbers for the current month should balance (match)
RECEIPTS and CHECKS/OTHER DISBURSEMENTS lines on MOR-8
<PAGE> 8
CASE NAME: #REF!
CASE NUMBER: #REF!
<TABLE>
<CAPTION>
September October November December
<S> <C> <C> <C> <C>
Line 12 Other
Accounting Services 1,892 6,965 50,013
Land Leases 22,000 20,000 19,000
Capital Expenditures-New Wells 89,000 199,000 408,000
Bank Charges 2,083 2,217 2,508
Consulting Fees 17,657 46,993 46,993
Computer Expenses 17,609 15,032 17,253
Promo/Memberships/Dues 2,532 1,007
Legal Fees 2,339 354 2,678
Office Supplies 4,681 1,984 5,406
Other Supplies 383 848 488
Freight & Postage 2,026 4,562 506
Professional Development 800 1,405 265
Shop Expense 665 1,382 49
Travel & Entertainment 10,601 4,402 9,417
Public Reporting Expense 2,339 4,881
--------- --------- ---------
$ 176,607 $ 311,032 $ 562,576
========= ========= =========
Line 21- Other Reorganization Expenses
Notice Mailout 7,414
Copies- Court filings & Reorg 1,283
Background Check-Brown Deal 200
Court & Bank Meeting Travel 208
Refund (Filing Fees) 11,930 (35)
--------- --------- --------- ---------
$ 11,930 $ 9,070 $ 0 $ 0
========= ========= ========= =========
</TABLE>
<PAGE> 9
CASE NAME: Costilla Energy, Inc.
CASE NUMBER: 99-70653-K
CASH ACCOUNT RECONCILIATION
MONTH OF December
<TABLE>
<CAPTION>
BANK NAME Bank of America Bank of America Bank of America
ACCOUNT NUMBER #375-076-7438 375-076-7661 #374-076-7438
ACCOUNT TYPE OPERATING PAYROLL MASTER OTHER FUNDS TOTAL
<S> <C> <C> <C> <C> <C>
BANK BALANCE 587,553.21 115,031.06 1,411,336.73 11,413,904.40 $ 13,527,825.40
DEPOSITS IN TRANSIT 0.00 $ 0.00
OUTSTANDING CHECKS 369,815.59 94,240.26 206,012.33 $ 670,068.18
-------------- ----------- -------------- --------------- ---------------
ADJUSTED BANK BALANCE $ 217,737.62 $ 20,790.80 $ 1,411,336.73 $ 11,207,892.07 $ 12,857,757.22
============== =========== ============== =============== ===============
BEGINNING CASH - PER BOOKS 194,877.55 23,328.19 1,349,588.97 9,744,864.26 $ 11,312,658.97
RECEIPTS* 292,216.74 5,564,093.78 44,625.20 $ 5,900,935.72
TRANSFERS BETWEEN ACCOUNTS 2,300,000.00 331,004.49 -5,502,346.02 2,871,341.53 $ 0.00
(WITHDRAWAL) OR INCONTRIBUTION BY
DEBTOR MFR-2 0.00 $ 0.00
CHECKS/OTHER DISBURSEMENTS* 2,569,356.67 333,541.88 1,452,938.92 $ 4,355,837.47
-------------- ----------- -------------- --------------- ---------------
ENDING CASH - PER BOOKS $ 217,737.62 $ 20,790.80 $1,411,336.73 $ 11,207,892.07 $ 12,857,757.22
============== =========== ============== =============== ===============
</TABLE>
MOR-8 * Numbers should balance (match) TOTAL RECEIPTS and
TOTAL DISBURSEMENTS lines on MOR-7
<PAGE> 10
CASE NAME: #REF!
CASE NUMBER: #REF!
CASH ACCOUNT RECONCILIATION
MONTH OF December
<TABLE>
<CAPTION>
BANK NAME Bank of America Bank of America Bank of America Chase Bank of Texas
ACCOUNT NUMBER #375-076-7438 #834386 #375-065-9203 #051-01021823
ACCOUNT TYPE REVENUE DISTRIB INVESTMENT CORPUS IMPREST CAFETERIA PLAN TOTAL
---------------- --------------- --------------- -------------------- ---------------
<S> <C> <C> <C> <C> <C>
BANK BALANCE 225,321.78 11,186,204.49 740.81 1,637.32 $ 11,413,904.40
DEPOSITS IN TRANSIT $0.00
OUTSTANDING CHECKS 206,012.33 $ 206,012.33
--------------- -------------- ---------- --------- ---------------
ADJUSTED BANK BALANCE $19,309.45 $11,186,204.49 $740.81 $1,637.32 $ 11,207,892.07
=============== ============== ========== ========= ===============
BEGINNING CASH - PER BOOKS -402,199.96 10,143,256.31 1,241.08 2,566.83 $ 9,744,864.26
RECEIPTS* 42,948.18 1,677.02 $ 44,625.20
TRANSFERS BETWEEN ACCOUNTS 1,871,341.53 1,000,000.00 $ 2,871,341.53
(WITHDRAWAL) OR INCONTRIBUTION BY
DEBTOR MFR-2 $ 0.00
CHECKS/OTHER DISBURSEMENTS* 1,449,832.12 500.27 2,606.53 $ 1,452,938.92
--------------- -------------- ---------- --------- ---------------
ENDING CASH - PER BOOKS $ 19,309.45 $11,186,204.49 $740.81 $1,637.32 $ 11,207,892.07
=============== ============== ========== ========= ===============
</TABLE>
MOR-8 * Numbers should balance (match) TOTAL RECEIPTS and
TOTAL DISBURSEMENTS lines on MOR-7
<PAGE> 11
CASE NAME: Costilla Energy, Inc.
CASE NUMBER: 99-70653-K
PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professionals. Also, for insiders, identify the type of compensation paid (e.g.,
salary, commission, bonus, etc.) (Attach additional pages as necessary).
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/COMP TYPE SEPTEMBER OCTOBER NOVEMBER DECEMBER MONTH MONTH
--------------------------- --------- --------- ----------- ---------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Atkins, Samuel Director's Comp 2,500.00 1,248.47 3,709.50
2. Hair, Cliff Salary+Exp Reimb 9,634.50 9,584.00 10,616.50 9,584.00
3. Kennedy, W.D. Director's Comp 2,500.00 1,000.00 3,500.00
4. Langdon, Jerry Director's Comp+Ins 3,520.12 1,020.12 2,020.12 4,520.12
5. Liedtke, Cadell Salary+Exp Reimb 25,061.00 25,025.00 25,039.25 25,052.50
6. Miller, Brian Salary+Exp Reimb 7,491.00 7,334.00 7,334.00 7,334.00
7. Musselman, H. Salary+Exp Reimb 20,834.00 22,184.00 20,834.00 23,920.31
8. Pagano, Sal Salary+Exp Reimb 8,334.00 9,622.40 8,784.23 8,641.87
9. Page, Bobby Salary+Exp Reimb 15,488.54 16,286.48 15,637.74 15,530.32
10. Zinn, Celia Salary+Exp Reimb 8,334.00 9,788.23 8,334.00 8,334.00
----------- ----------- ----------- -----------
TOTAL INSIDERS (MOR-1) $103,697.16 $100,844.23 $100,848.31 $110,126.62 $0.00 $0.00
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH
PROFESSIONALS MONTH OCTOBER NOVEMBER DECEMBER MONTH MONTH
------------- ----- ------- -------- --------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
1. Sheinfield, Maley & Kay P.C. 61,000.00 42,924.74 45,611.67
2. Cotton, Bledsoe 11,795.17 62,923.80
3. KPMG, LLP 55,034.29
4. Petrie Parkman 75,354.16
5. Weil Gotshal 25,743.63
6.
---------- ---------- -----------
TOTAL PROFESSIONALS (MOR-1) $0.00 $61,000.00 $54,719.91 $264,667.55 $0.00 $0.00
========== ========== ===========
</TABLE>
MOR-9
<PAGE> 1
EXHIBIT 99.2
[COSTILLA ENERGY LOGO]
Contact:
Guy McCrary
915/683-3092
NEWS FOR IMMEDIATE RELEASE
COSTILLA ENERGY FILES DISCLOSURE STATEMENT RELATING TO
PROPOSED REORGANIZATION PLAN
YEAR-END RESERVE ESTIMATES REPORTED
MIDLAND, Texas, March 2, 2000 - Costilla Energy, Inc. (OTC Bulletin Board:
COSEQ) today reported that it has filed with the U.S. Bankruptcy Court for the
Western District of Texas, Midland Division, a Disclosure Statement relating to
the Company's proposed plan of reorganization, which was filed on February 11,
2000, under Chapter 11 of the U.S. Bankruptcy Code. The Disclosure Statement
describes the Company's proposed reorganization plan, and contains certain
information about the Company's business operations and oil and gas properties,
including unaudited financial data for the year ended December 31, 1999, and
reserve estimates as of January 1, 2000. The Disclosure Statement is subject to
approval by the Bankruptcy Court and a hearing has been set on the Disclosure
Statement for April 11, 2000. After approval by the Bankruptcy Court, the
Disclosure Statement will be distributed to parties with certain claims and
interests in the Company in connection with the solicitation of votes on the
Company's proposed plan of reorganization. Costilla's proposed plan of
reorganization is subject to confirmation by the U.S. Bankruptcy Court. There
are no assurances that the Company's plan of reorganization will be approved or
when the effective date of a plan will be set.
The Company intends to file with the Securities and Exchange Commission a Form
8-K containing its Monthly Operating Report which was previously filed with the
U.S. Bankruptcy Court and includes unaudited financial data for the period
September 3, 1999 through December 31, 1999.
As of January 1, 2000, Costilla's proved reserves were estimated to be 99.1
Bcfe, of which 79 percent was natural gas, with an SEC present value at 10%
(PV-10) of $93.2 million, based on year-end NYMEX pricing at December 31, 1999
of $2.33 per Mcf of gas and $25.68 per barrel of oil. Of these estimated
reserves, 63.8 Bcfe were classified as proved developed producing, 13.6 Bcfe as
proved developed non-producing, and 21.6 Bcfe as proved undeveloped.
Subsequent to January 1, 2000, the Company successfully drilled and completed
the Freeman #2 well in the Southwest Speaks Field of Lavaca County, Texas. Based
upon initial results from this new well, the Company has reclassified the
Freeman #2 from proved undeveloped to proved developed producing, and classified
two additional locations proximate to the Freeman #2 as proved undeveloped. If
these additional reserves estimated by the Company had been included in the
reserve estimates described above, the Company's proved reserves at January 1,
2000 would have been 110.5 Bcfe with a PV-10 of approximately $103.8 million.
Costilla Energy, Inc. is an independent oil and gas company with operations
primarily in the Gulf Coast region of South Texas and the Permian Basin of West
Texas and Southeastern New Mexico.
Certain statements in this news release constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks, uncertainties, and
other factors which may cause the actual results, performance, or achievements
of Costilla Energy, Inc. to be materially different from any future results,
performance, or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the following: the volatility of
oil and gas prices; the Company's ability to replace its oil and gas reserves;
the availability of capital resources; the reliance upon estimates of proved
reserves; operating hazards and uninsured risks; competition; government
regulation; and the ability of the Company to implement its business strategy.
Additional information is available in the Company's filings with the Securities
and Exchange Commission, which are incorporated by this reference as though
fully set forth herein.
