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FOR IMMEDIATE RELEASE
FOR MORE INFORMATION, CONTACT:
Glenn Hart, Michael Petroleum Corporation
713-895-0909, Ext. 17
[email protected]
Robert Swanson, Michael Petroleum Corporation
713-895-0909, Ext. 18
[email protected]
MICHAEL PETROLEUM CORPORATION COMPLETES RESTRUCTURING EFFORT
HOUSTON (August 14, 2000) - Houston-based Michael Petroleum Corporation
announced today that its Chapter 11 plan of reorganization has become
effective and the company has emerged from bankruptcy. Michael Petroleum
filed for protection under Chapter 11 of the United States Bankruptcy code on
December 10, 1999, and obtained confirmation of its plan on July 27, 2000.
Under the plan, Michael Petroleum has been recapitalized with a combination
of bank debt and private equity totaling $107,000,000.
As a result of the recapitalization, Michael Petroleum has a new ownership
group led by MPAC Energy LLC and the Wayland Investment Fund. MPAC, an entity
owned by affiliates of EnCap Investments LLC and El Paso Energy, and Wayland,
an affiliate of Cargill, will own in excess of 95 percent of the reorganized
company. Additionally, Michael Petroleum has entered into a new $75,000,000
credit facility provided by Bank One, Banque Paribas, Union Bank of
California and Bank of Scotland.
"I am pleased to announce, that as a result of the recapitalization, Michael
Petroleum Corporation is on the best financial footing in its 17 - year
history," said Glenn Hart, chief executive officer of Michael Petroleum. "The
company will now accelerate its drilling program and actively pursue
additional acquisition opportunities in the Lobo Wilcox Trend in Webb and
Zapata Counties."
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MICHAEL PETROLEUM PAGE TWO
F. Fox Benton, Jr., chairman of the Board of MPAC, will also serve as
chairman of the reorganized company. The remaining board will consist of Gary
R. Petersen and Robert L. Zorich of EnCap Investments, Blake M. Carlson of
Wayland, and Charles M. Strain, a Houston-based industry consultant.
Michael Petroleum Corporation is a privately held natural gas exploration and
production company with offices in Houston and Laredo. The company presently
operates principally in the Lobo Wilcox Trend in South Texas. For more
information about Michael Petroleum, call (713) 895-0909 or visit
www.michaelpetroleum.com.
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