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[BARGO ENERGY COMPANY LOGO]
FOR IMMEDIATE RELEASE Contact: Jonathan M. Clarkson, President
November 17, 2000 713-236-9792
BARGO ENERGY COMPANY SELLS CALIFORNIA AND OTHER NON-STRATEGIC ASSETS
HOUSTON, TEXAS - Bargo Energy Company (OTC Bulletin Board: BARG) announced today
that it has entered into a purchase and sale agreement to sell its California
properties located in Kern County, California to an undisclosed buyer. The
effective date of the sale is December 1, 2000 with closing to occur no later
than January 15, 2001.
In addition, since August 1, 2000 the Company has sold various non-strategic
assets in the Permian Basin, East Texas and Kansas. Proceeds from these sales
and the sale of the California assets is expected to generate approximately $65
million, prior to closing adjustments, which will be used to paydown bank debt.
The Company is continuing to evaluate various strategic options as to the
remainder of its oil and gas property portfolio.
Bargo Energy Company is a domestic oil and gas production, exploitation and
acquisition firm headquartered in Houston, Texas.
This Press Release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements other than statements of historical facts
included in this Press Release, including statements regarding the Company's
estimated reserve quantities, business strategy, plans and objectives of
management of the Company for future operations and budget estimates, are
forward-looking statements. The Company can give no assurances that the
assumptions upon which such forward-looking statements are based will prove to
have been correct. Important factors that could cause actual results to differ
materially from the Company's expectations ("Cautionary Statements") include
volatility of oil and gas prices, the markets for oil and gas, environmental
regulations, the substantial capital requirements associated with oil and gas
operations and other factors are set forth in the Company's reports filed with
the Securities and Exchange Commission, including the Company's Form 10-KSB for
its 1999 fiscal year. All subsequent written and oral forward-looking statements
attributable in the Company or persons acting on its behalf are expressly
qualified by the Cautionary Statements.
