COHO ENERGY INC

COHO ENERGY INC

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Company Overview
Coho Energy Inc., with registered head office located in Dallas, Texas, is engaged in the exploration and production of crude oil and natural gas. The company conducts its operations through its subsidiaries Coho Resources Inc. and Coho Oil and Gas Inc. Its activities are concentrated principally in Mississippi and Oklahoma with operations being conducted in 19 major producing fields producing crude oil and natural gas. The company’s principal Mississippi operations include Brookhaven, Martinville, Laurel, Summerland, and Soso fields. Its principal Oklahoma operations include Tatums, East Fitts, East Velma Middle Block, Eola, Jennings Deese,Bumpass, Cox Penn, Eola, Graham Deese, Jennings Deese, North Alma Deese, and Sholem Alechem Fault Block “A” fields. Coho Energy is a publicly traded company which was founded in 1980.
Business Summary
Coho Energy, Inc. is an independent energy company engaged, through its wholly owned subsidiaries, Coho Resources, Inc. and Coho Oil & Gas, Inc., in the development and production of, and exploration for, crude oil and natural gas. On February 6, 2002, the Company and its wholly owned subsidiaries filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas. The bankruptcy petitions were filed to protect the Company while it develops a solution to its liquidity problems. The Company is operating as debtor-in-possession under the court’s supervision and pursuant to the court’s orders. In August 2002, the Company sold all of its oil and gas properties.
Description and history
Coho Energy, Inc. is an independent energy company engaged, through its wholly owned subsidiaries, Coho Resources, Inc. and Coho Oil & Gas, Inc., in the development and production of, and exploration for, crude oil and natural gas. On February 6, 2002, the Company and its wholly owned subsidiaries filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas. The bankruptcy petitions were filed to protect the Company while it develops a solution to its liquidity problems. The Company is operating as debtor-in-possession under the court’s supervision and pursuant to the court’s orders.

The Company’s crude oil activities are concentrated principally in Mississippi and Oklahoma. As of December 31, 2001, the Company’s total proved reserves were 90.6 million barrels of oil equivalent (MMBOE). Approximately 96% of the Company’s total proved reserves were comprised of crude oil. As of December 31, 2001, the Company’s operations were conducted in 19 major producing fields, 16 of which it operates. The Company’s average working interest in the fields it operates was approximately 80%. In August 2002, the Company sold all of its oil and gas properties.

Mississippi

Coho Energy commenced operations in Mississippi in the early 1980s, and has focused most of its development efforts in that area. The salt basin in central Mississippi offered significant long-term potential due to the basin’s large number of mature fields with multiple oil and gas producing sands. The application of proven technology to these underexploited and underexplored fields yielded attractive, lower-risk exploitation and exploration opportunities.

The Company has identified 20 potential secondary projects in Mississippi. Prior to 2000, the Company developed six of these projects, and, during 2000, it initiated work on a seventh project in the Brookhaven field. Based on the results of this waterflood project in the Brookhaven field, the Company has selected several other areas in the field that should present opportunities to further develop secondary reserves using existing well bores and facilities.

Oklahoma

The acquisition of the Oklahoma properties, in 1997, presented the Company with nine existing secondary projects. It has identified 14 additional potential secondary projects on these properties. During 2000 and 2001, the Company initiated work on nine of these 14 waterflood projects. In late 2000, the Company initiated the installation of facilities and conversion or repair of available well bores to serve the Sims and Humphreys reservoirs in the East Velma Middle Block Unit with work continuing throughout 2001. In 2001, the Company initiated two pilot waterflood projects in the Bumpass Unit to serve the Goodwin and Flattop reservoirs to evaluate their response to water injection and determine the economic feasibility of installing a complete waterflood project. In addition, pilot waterflood projects were initiated to further explore the potential for additional secondary reserve recovery in the Jennings Deese Unit, Graham Deese Unit, North Alma Deese Unit, Tatums Unit and East Fitts Unit, which were under waterflood operations at the time they were acquired in late 1997.

Mid-Continent Area

In December 1997, Coho Energy acquired interests in approximately 40,000 gross acres concentrated primarily in southern Oklahoma, including 12 principal producing fields. Of the 12 principal producing fields, the Company is the operator of 10 fields. As of December 31, 2001, the Company had an average working interest of approximately 75% in the 10 fields it operates.

These properties are very similar to the Company’s Mississippi salt basin operations, and it should be able to recover additional reserves not yet developed through detailed study and exploitation of these properties. In 2001, the Company drilled a total of 29 gross wells. It drilled two dry holes in the drilling program, which resulted in a successful completion rate of 93%. One of the more significant wells was drilled in the Eola field to test a new fault block by re-entering an existing well and directionally drilling to the objective in the McLish and Bromide sands. This well was completed in March 2001, and had an initial production rate of 275 barrels of oil equivalent (BOE) per day gross, or 238 BOE per day net.

Gulf Coast Area

The Brookhaven field is located in Lincoln County, Mississippi, near the town of Brookhaven. The field was discovered in 1943. It covers a surface area of approximately 13,000 acres. The Company acquired the Brookhaven field in 1995, and owns an average working interest of 98% in the field. Productive intervals in the field range from the Tuscaloosa formation at approximately 10,500 feet to the Hosston formation at 16,700 feet. The Brookhaven field produces some of the Company’s highest quality crude oil.

The Laurel field is located in Jones County, Mississippi, and lies predominantly within Laurel city limits. The Company owns an average working interest of 95% in the field. The field is a multi-pay geologic structure known as a salt dome with known hydrocarbon production formations ranging in depth from 7,500 feet to 13,500 feet. The Laurel field is the Company’s largest oil producing property and represented approximately 41% of its total Mississippi production on a BOE basis in 2001.

The Martinville Field is located in Simpson County, Mississippi. The Company acquired its initial interest in the Martinville field in 1989, and owns an average working interest of 99% in the field. The productive limits of the field are estimated to cover more than 7,400 acres and, as of December 31, 2001, contained a total of 47 gross wells with 18 wells being operated as producing wells. The field consists of numerous hydrocarbon producing formations ranging in depth from approximately 8, 500 to 14,500 feet.

The Soso Field is located in Smith and Jones Counties, Mississippi, and covers approximately 6,500 acres. The Company acquired its initial interest in this field in 1990, and owns an average working interest of 94% in the field.

The Summerland field is located in Jones and Covington Counties, Mississippi, and covers approximately 1,300 acres. The Company acquired operating control of the Summerland field in 1989, and owns an average working interest of 90%. As of December 31, 2001, the Company operated 19 gross producing wells.

Other Domestic Properties

Coho Energy also has working interests in other producing properties in Mississippi and Texas. The Company operates the Bentonia (99% working interest) and Cranfield (100% working interest) fields in Mississippi and four gas wells in Navarro County, Texas (100% working interest). The Company also owns non-operated working interests in the Glazier field (39% working interest) in Mississippi, the Clarksville field (43% working interest) in Texas and a field in federal waters offshore North Padre Island, Texas (39% working interest). As of December 31, 2001, the Company removed all proved reserves (453 MBOE) for the North Padre Island Block A-59, which is operated by El Paso Production, due to the lack of success in attempts to workover the well in 2001. As of December 31, 2001, these fields had combined net proved reserves of 2.8 MMBOE, as compared to 3.6 MMBOE as of December 31, 2000. Aggregate average daily net production from these properties for 2001 was approximately 420 BOE, as compared to 427 BOE for 2000.

Business Line
Engaged in the exploration and production of crude oil and natural gas
Subsidiary

Advisor
ARTHUR ANDERSEN LLP
IPO date

US SIC Code
1311
Company Address
Suite 800
14755, Preston Road
City province or state postal code
75254, DALLAS, TX
Phone: +1 972 774 8300
Fax: +1 972 991 2257
Country address: UNITED STATES OF AMERICA
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