Patina in Series of Transactions

Apr 17, 2001, 01:00 ET from Patina Oil & Gas Corporation

    DENVER, April 17 /PRNewswire/ -- PATINA OIL & GAS CORPORATION (NYSE:   POG)
 today provided an update on certain recent transactions.  The Company
 indicated it had sold its interest in Louisiana's Lake Washington Field on
 March 30th.  The property had been acquired as part of the Elysium purchase in
 November 2000.  The $30.5 million of proceeds was used to reduce Elysium's
 debt to Patina, which had fallen to $12.0 million at March 31st.  As the
 property was purchased less than twelve months ago, no gain or loss will be
 recognized.  The payment from Elysium helped reduce Patina's bank debt to
 $138.0 million at March 31, 2001.  Based on current projections, debt will
 fall to less than $100.0 million by June 30th.
     The Company also announced that it had reacquired its Section 29 tax
 credits and associated property interests from a major financial institution
 and exercised its option to repurchase 758,000 shares of its common stock from
 a major shareholder.  The tax credits were repurchased as the Company's
 profitability now allows it to fully utilize these credits.  The share
 repurchase, which will close on April 30th, will be made at a price of
 $20.50 a share or $15.5 million in aggregate.
     Simultaneously, the Company provided additional details on three recently
 initiated grassroots projects in the Rocky Mountain region.  In the first, the
 Company acquired a 50% interest in the Castlegate Project, a coal bed methane
 ("CBM") development project located in Carbon County, Utah within the Uinta
 Basin.  Patina acquired leases covering approximately 45,000 gross
 (18,000 net) acres from JM Huber, who retained a 50% interest in the project.
 Natural gas is currently being produced from six wells on the property.  It is
 expected that production will increase beginning in the 4th quarter after a
 new water disposal system is installed and additional drilling as well as
 recompletions are initiated.  In addition, the Company indicated it has
 assembled approximately 22,000 gross (19,000 net) acres in Moffat County,
 Colorado, known as the Sugar Loaf Project.  The Project will initially target
 tight gas potential in the Williams Fork Mesaverde and the CBM potential of
 the Mesaverde coal.  Production testing should commence in September after a
 gas line is completed.  Finally, the Company has acquired approximately
 51,000 gross (50,000 net) acres on the Antelope Arch located in Fremont and
 Sweetwater Counties, Wyoming within the Green River Basin.  Targeted
 formations will include tight gas in the Lance, Shannon and Frontier
 sandstones and the CBM potential of the Fort Union coal.  Test drilling on the
 project should be initiated by the 4th quarter.  In aggregate, the Company has
 expended $5.5 million on these projects through March 31, 2001.  An additional
 $10.2 million is budgeted for further testing and development through year-
 end.  At March 31st, a total of 27.5 Bcfe of proved reserves have been
 assigned by the Company's independent engineers to the Castlegate Project.
 
     Patina is an independent oil company engaged in the acquisition,
 development, exploitation and production of oil and natural gas primarily in
 Colorado's Wattenberg Field.
 
     This release contains certain forward-looking statements within the
 meaning of the Federal securities laws.  Such statements are based on
 management's current expectations, estimates and projections, which are
 subject to a wide range of uncertainties and business risks.  Factors that
 could cause actual results to differ from those anticipated are discussed in
 the Company's periodic filings with the Securities and Exchange Commission,
 including its Annual Report on Form 10-K for the year ended December 31, 2000.
 
 

SOURCE Patina Oil & Gas Corporation
    DENVER, April 17 /PRNewswire/ -- PATINA OIL & GAS CORPORATION (NYSE:   POG)
 today provided an update on certain recent transactions.  The Company
 indicated it had sold its interest in Louisiana's Lake Washington Field on
 March 30th.  The property had been acquired as part of the Elysium purchase in
 November 2000.  The $30.5 million of proceeds was used to reduce Elysium's
 debt to Patina, which had fallen to $12.0 million at March 31st.  As the
 property was purchased less than twelve months ago, no gain or loss will be
 recognized.  The payment from Elysium helped reduce Patina's bank debt to
 $138.0 million at March 31, 2001.  Based on current projections, debt will
 fall to less than $100.0 million by June 30th.
     The Company also announced that it had reacquired its Section 29 tax
 credits and associated property interests from a major financial institution
 and exercised its option to repurchase 758,000 shares of its common stock from
 a major shareholder.  The tax credits were repurchased as the Company's
 profitability now allows it to fully utilize these credits.  The share
 repurchase, which will close on April 30th, will be made at a price of
 $20.50 a share or $15.5 million in aggregate.
     Simultaneously, the Company provided additional details on three recently
 initiated grassroots projects in the Rocky Mountain region.  In the first, the
 Company acquired a 50% interest in the Castlegate Project, a coal bed methane
 ("CBM") development project located in Carbon County, Utah within the Uinta
 Basin.  Patina acquired leases covering approximately 45,000 gross
 (18,000 net) acres from JM Huber, who retained a 50% interest in the project.
 Natural gas is currently being produced from six wells on the property.  It is
 expected that production will increase beginning in the 4th quarter after a
 new water disposal system is installed and additional drilling as well as
 recompletions are initiated.  In addition, the Company indicated it has
 assembled approximately 22,000 gross (19,000 net) acres in Moffat County,
 Colorado, known as the Sugar Loaf Project.  The Project will initially target
 tight gas potential in the Williams Fork Mesaverde and the CBM potential of
 the Mesaverde coal.  Production testing should commence in September after a
 gas line is completed.  Finally, the Company has acquired approximately
 51,000 gross (50,000 net) acres on the Antelope Arch located in Fremont and
 Sweetwater Counties, Wyoming within the Green River Basin.  Targeted
 formations will include tight gas in the Lance, Shannon and Frontier
 sandstones and the CBM potential of the Fort Union coal.  Test drilling on the
 project should be initiated by the 4th quarter.  In aggregate, the Company has
 expended $5.5 million on these projects through March 31, 2001.  An additional
 $10.2 million is budgeted for further testing and development through year-
 end.  At March 31st, a total of 27.5 Bcfe of proved reserves have been
 assigned by the Company's independent engineers to the Castlegate Project.
 
     Patina is an independent oil company engaged in the acquisition,
 development, exploitation and production of oil and natural gas primarily in
 Colorado's Wattenberg Field.
 
     This release contains certain forward-looking statements within the
 meaning of the Federal securities laws.  Such statements are based on
 management's current expectations, estimates and projections, which are
 subject to a wide range of uncertainties and business risks.  Factors that
 could cause actual results to differ from those anticipated are discussed in
 the Company's periodic filings with the Securities and Exchange Commission,
 including its Annual Report on Form 10-K for the year ended December 31, 2000.
 
 SOURCE  Patina Oil & Gas Corporation