TCR_Public/960412.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - April 12, 1996



  1. Presidio reports 1995 results and negotiations for the sale of company
  2. COLUMBIA GAS REPORTS STRONG FIRST QUARTER NET INCOME




Presidio reports 1995 results and continuing negotiations for the sale of
the company to Tom Brown, Inc.


            DENVER, CO -- April 12, 1996 -- Presidio Oil Co.
        (PRS/A) today reported oil and gas revenues for the fourth quarter
        ended December 31, 1995 of $7.6 million compared to $10.2 million
        for the similar 1994 period, resulting in a net loss of $5.4 million
        ($0.20 per Class A and Class B share) compared to a net loss of $5.8
        million ($0.21 per Class A and Class B share) for the 1994 fourth
        quarter.  
        


            Oil production for the 1995 fourth quarter was 205,000 barrels
        compared to 274,000 barrels in the similar 1994 period.  Sales of
        producing properties during 1995 accounted for the majority of such
        decrease in oil production, with the remainder resulting from lower
        production rates in several significant fields.  Oil prices received
        by the Company in the 1995 fourth quarter averaged $15.17 per barrel
        compared to $14.52 per barrel received in the 1994 fourth quarter.  
        


            Gas production for the 1995 fourth quarter was 3.3 billion cubic
        feet ("BCF") compared to 4.5 BCF in the 1994 fourth quarter, with
        average prices of $1.38 and $1.37 per thousand cubic feet ("MCF"),
        respectively.  

        
            Oil and gas revenues in 1995 were $31.3 million compared to
        $40.6 million in 1994, resulting in a net loss of $29.6 million
        ($1.08 per Class A and Class B share) for 1995, compared to a net
        loss from continuing operations of $24.6 million ($0.91 per Class A
        and Class B share) for 1994.  
   

     
            Oil production for the 1995 was 866,000 barrels compared to
        1,137,000 barrels in 1994, with average prices of $15.31 and $13.81
        per barrel, respectively.  Gas production in 1995 was 14.8 BCF
        compared to 17.2 BCF in 1994, with average prices of $1.22 and $1.45
        per MCF, respectively
      

  
            Presidio's proved reserves at yearend 1995 were 11.8 million
        barrels of oil ("MMBO") and 288 BCF of gas, or 59.8 million
        equivalent barrels of oil ("MMBOE"), after production in 1995 of .9
        million MMBO and 14.8 BCF, or 3.3 MMBOE, and the divestiture of .3
        MMBO and 19.6 BCF, or 3.6 MMBOE, in such year.  This resulted in an
        11% decrease in the Company's 1995 reserves compared to its yearend
        1994 reserves of 13.3 MMBO and 324 BCF, or 67.3 MMBOE.  
        


            Since late November of 1995, the Company and Tom Brown, Inc.
        ("Tom Brown"), which in June 1995 acquired approximately $56 million
        in principal amount of the Company's Senior Gas Indexed Notes Due
        2002, have been negotiating with each other and with certain of the
        Company's creditors regarding a proposed transaction (the "Tom Brown
        Transaction") pursuant to which Tom Brown would acquire the Company.
        The negotiations with Tom Brown and certain of the Company's
        creditors are continuing in an attempt to reach an informal
        consensual agreement regarding the terms of the Tom Brown
        Transaction, including the allocation of the proceeds thereof.  In
        so far as the Tom Brown Transaction does not contemplate full
        payment of principal and accrued interest on the Company's public
        debt, it is anticipated that such transaction will be implemented
        through a plan of reorganization filed under the bankruptcy code.
        The Company expects to enter into a definitive agreement relating to
        the Tom Brown Transaction in the second quarter of 1996.  There can
        be no assurance, however, that such an agreement with Tom Brown will
        be reached or, if such an agreement is entered into, that an
        informal consensual agreement with the Company's bank lenders and
        certain of the significant holders of the Company's public debt can
        be agreed upon as to the amount or nature of the proceeds, if any,
        that would be available for distribution to the Company's debt and
        equity holders if the Tom Brown Transaction is consummated.  

        
            The Company further stated that the auditors' opinion as to its
        1995 financial statements includes an explanatory paragraph stating
        the auditors are unable to express an opinion in respect of such
        1995 financial statements due to the substantial doubt as to the
        Company's ability to continue as a going concern because of its
        operating losses, working capital deficit and stockholders' capital
        deficiency.
  

      
            Presidio is an independent oil and gas company engaged in
        onshore oil and gas exploration, development and production in the
        continental United States.

        
         
                     PRESIDIO OIL COMPANY AND SUBSIDIARIES  
                     Consolidated Statements of Operations
        
                                Fourth Quarter              Year Ended       
                                 Ended Dec. 31,              Dec. 31
                              1995         1994         1995         1994
                            (in thousands, except per share amounts)  
        
        Oil and gas revenues    $  7,590   $ 10,214    $ 31,298    $ 40,643
          Less - direct costs:
           Lease operating     2,567      3,179      11,342      12,483
           Production taxes      429        596       1,775       2,373
           Depletion,
            depreciation
            and amortization   3,267      4,468      14,405      17,655
                               1,327      1,971       3,776       8,132
        General and
          administrative expense     685      1,146       5,529       6,089
        Other income (expense):
          Interest expense        (7,727)    (7,194)    (29,566)    (28,130)
           Other               1,666        542       1,731       1,525
                              (6,061)    (6,652)    (27,835)    (26,605)
        Net loss                $ (5,419)  $ (5,827)   $(29,588)   $(24,562)
        Loss per share:
          Class A Common Stock  $   (.20)  $   (.21)   $  (1.08)   $   (.91)
          Class B Common Stock  $   (.20)  $   (.21)   $  (1.08)   $   (.91)
        Weighted average common
           shares outstanding     28,535     28,535      28,535      28,535
        Less:  weighted average
           unallocated shares held
           by the Company's
           Employee Stock
        Ownership Plan        (1,141)    (1,404)     (1,240)     (1,497)
                              27,394     27,131      27,295      27,038

        
                     PRESIDIO OIL COMPANY AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheets
        
                                                    December 31,      
                                           1995                    1994  
                                                   (in thousands)  
        Assets:
         
        Current Assets                     $ 15,167                $ 21,213
        Property, Plant and
           Equipment, net                   216,865                 228,675
        Other Assets                          9,914                   9,684
                                       $241,946                $259,572
                                                                           
        Liabilities and Stockholders'
           Deficit
         
        Current Liabilities                $280,816                $ 25,081
        Long-term Debt, including
          non-current liabilities            11,125                 255,039
        Stockholders' Deficit               (49,995)                (20,548)
                                       $241,946                $259,572
        

        CONTACT:  Presidio Oil Co.
                  Investor Relations, (212) 593-2244



COLUMBIA GAS REPORTS STRONG FIRST QUARTER NET INCOME

        
            WILMINGTON, Del., April 12, 1996 - href="chap11.columbia.html">The Columbia Gas
        System, Inc.
, (NYSE: CG) today reported first quarter net
income of
        $151.3 million, or $2.99 per share.  This compares to reported net
        income for the first quarter of 1995 of $128.8 million, or $2.55 per
        share, and to $95.2 million, or $1.88 per share, after adjusting for
        bankruptcy-related items and unrecorded interest expense.
        


            Columbia System Chairman Oliver G. (Rick) Richard III pointed
        out that each of Columbia's business segments posted improved
        results in the current period due to higher rates for the
        transmission and distribution companies and to colder temperatures
        that resulted in higher average wellhead prices for natural gas
        production, increased distribution segment throughput, and improved
        propane sales.
        


            Richard also cited several major developments during the
        quarter: "We reached an agreement for the sale of Columbia Gas
        Development Corporation, our southwest oil and gas company, to Hunt
        Petroleum Corporation for approximately $200 million; our common
        stock offering was oversubscribed generating $239.2 million in new
        capital; our principal interstate pipeline subsidiary filed for a
        $350 million expansion that will result in a 7 percent increase in
        peak day capacity when completed in 1999; and we announced plans to
        build a new corporate center in northern Virginia where we will
        consolidate the corporate headquarters and other key corporate
        functions in order to realize economies and efficiencies."  The sale
        of Columbia Development is expected to be completed April 30, 1996,
        to be effective December 31, 1995.

        
            Columbia had 55,015,505 shares of common stock outstanding on
        March 31, 1996.  However, earnings per share calculations are based
        on the average number of shares outstanding during the two periods,
        which were 50,662,440 shares in the current quarter and 50,563,335
        shares in the first quarter of 1995.
        

                            Operating Results


            First quarter operating income for the transmission segment was
        $85.6 million, an increase of  $9 million over the same period in
        1995. This was principally due to higher rates Columbia Gas
        Transmission Corp. began collecting, subject to refund, on February
        1, permitting higher recovery of operating costs that have increased
        since the company's last general rate increase in 1991.  Partially
        offsetting the rate increase was the effect of $5.3 million in
        revenue, recorded in 1995, that resulted from exit fees paid to
        Columbia Gulf Transmission Co.
   

     
            Colder weather combined with higher rates now in effect in
        Pennsylvania, Kentucky, Maryland and Virginia resulted in
        distribution segment operating income of $168 million during the
        current quarter, a $51.8 million increase over the first quarter of
        1995.  Temperatures were 13 percent colder than unseasonably mild
        temperatures experienced last year and were the principal reason
        distribution segment throughput increased 14.7 billion cubic feet to
        224.6 billion cubic feet. Operating and maintenance expense is
        essentially unchanged from last year as the distribution units are
        benefiting from efficiency measures and the streamlining of
        operations.

        
            Operating income for the oil and gas segment was $10.8 million
        in the current period, compared to a loss of $100,000 last year.
        This reflects higher average prices of $3.14 per thousand cubic feet
        for Appalachian gas production this year, a 38 percent ($0.87 per
        thousand cubic feet) increase over 1995.  The significant increase
        in gas prices resulted primarily from colder weather in the eastern
        United States.
   

     
            Operating income for other energy operations was $16.7 million,
        an $8.8 million increase over the same period in 1995.  This was
        primarily due to colder weather that increased propane sales and gas
        marketing activities.

        
            The Columbia Gas System, Inc., is one of the nation's largest
        natural gas systems with assets in excess of $6 billion.  Its
        operating companies are engaged in all phases of the natural gas
        business, provide marketing and fuel management services and
        generate electric power. Columbia companies, directly or indirectly,
        serve more than seven million gas users in 15 states and the
        District of Columbia. Information about Columbia and its operating
        units is available on the World Wide Web at
        href="http://www.columbiaenergy.com" target=_new>http://www.columbiaenergy.com">http://www.columbiaenergy.com

   

     

                      THE COLUMBIA GAS SYSTEM, INC.
                   Summary of Financial Operating Data
                                                        Three Months
                                                       Ended March 31,
                                                     1996         1995
        Income Statement Data
         ($ millions)
        Total Operating Revenue                     1,203.0     1,030.7
        Net Income                                    151.3       128.8
        
         Operating Income (Loss) by Segment:
          Transmission                                 85.6        76.6
          Distribution                                168.0       116.2
          Oil and Gas                                  10.8        (0.1)
          Other Energy                                 16.7         7.9
          Corporation                                  (2.9)       (0.7)
        Total                                         278.2       199.9
        
        Per Share Data:
         Earnings on Common Stock                     $2.99       $2.55
         Average Common Shares Outstanding (millions)  50.7        50.6
        
        Capitalization as of March 31, (in millions)
                                                    March 31,  December 31,
                                                       1996        1995
        Common Stock Equity:
         Common stock, par value $10 per share -
          outstanding 55,015,505 and
          50,563,335 shares, respectively             550.2       506.2
          Additional paid in capital                  735.2       595.8
          Retained earnings                           213.8        69.8
          Less: Cost of treasury stock
           (1,416,155 shares outstanding
           as of December 31, 1995)                     ---       (57.8)
        Total Common Stock Equity                   1,499.2     1,114.0
        Preferred Stock                                 ---       399.9
        Long-Term Debt                              2,004.2     2,004.5
        Total Capitalization                        3,503.4     3,518.4
        
                   Summary of Financial Operating Data
                                                         Three Months
                                                        Ended March 31,
                                                       1996        1995
        Operating Data
        Oil and Gas Volumes:
        Gas Production (billion cubic feet):
         Appalachian                                    8.5         9.1
         Southwest                                      ---         8.6
        Total                                           8.5        17.7
        Oil Production (000 barrels):
         Appalachian                                     70          78
         Southwest                                      ---         664
           Total                                             70         742
        
        Transmission (billion cubic feet):
        Transportation
         Columbia Transmission
          Market Area                                 429.5       401.2
         Columbia Gulf
          Main-line                                   170.2       154.9
          Short-haul                                   69.3        50.7
         Intrasegment Eliminations                   (166.5)     (151.3)
        Total Throughput                              502.5       455.5
        
         Distribution (billion cubic feet)
           Gas Sales                                  153.0       133.1
           Transportation                              71.6        76.8
          Total Throughput                            224.6       209.9
        
        Degree Days-Distribution Service Territory
          Actual                                      3,102       2,758
          Normal                                      2,979       2,947
          % Colder (warmer) than normal                   4          (6)
          % Colder (warmer) than prior period            13         (12)
        
        Bankruptcy-related and Unusual Items
        After-tax effect on Net Income
        
        Reported Net Income                           151.3       128.8
          Less:
          Bankruptcy related items
           Estimated interest costs not
            recorded on prepetition debt
            prior to emergence                          ---        40.4
           Professional fees and related expenses       ---        (6.8)
         Total adjustments                              ---        33.6
        Net Income after adjusting
         for bankruptcy and unusual items             151.3        95.2


        CONTACT:  Media, Bill Chaddock, 302-429-5261, or Bill McLaughlin,
        302-429-5443, or Analysts, Tom Hughes, 302-429-5363, or Ken Murphy,
        302-429-5471