Prize Energy Closes $65 Million Apache Acquisition

Business Wire, March 5, 2001

Business Editors

DALLAS--(BUSINESS WIRE)--March 5, 2001

Prize Energy Corp. ("Prize") (AMEX: PRZ) announced today that it has closed the purchase of interests in oil and gas properties pursuant to the $65,000,000 Purchase and Sale Agreement dated December 29, 2000 between Prize and Apache Corporation ("Apache") on February 28, 2001. The effective date of the purchase is January 1, 2001 and Prize assumed operations of the oil and gas properties on March 1, 2001. The Company's current bank group financed the acquisition under the existing credit facility. The acquisition is immediately accretive on a per share basis to earnings, cash flow, production and reserves.

The producing properties are primarily located in the Company's core operating areas of the Permian Basin of West Texas, Onshore Gulf Coast region of South Texas and Louisiana, and the Mid-Continent region of Western Oklahoma and the Texas Panhandle. As of December 31, 2000, the proved producing reserves attributable to the oil and gas properties acquired were approximately 9.0 million barrels of oil and 22.8 billion cubic feet of natural gas or 12.8 million barrels of oil equivalent.

Lon C. Kile, President and COO stated, "The Apache acquisition significantly contributes to achieving the Company's 2001 goals in reserve replacement and finding cost." Mr. Kile added, "As has been the case with our previous acquisitions, when our technical staff completes the necessary field studies on these properties, additional development and profitable activities will be added to our existing inventory."

Prize Energy Corp. is a publicly traded mid-size oil and gas independent, headquartered in the Dallas, Texas area. The Company's oil and gas operations are concentrated in the Permian Basin of West Texas and Southeastern New Mexico, Onshore Gulf Coast region of Texas and Louisiana, and the Mid-Continent region of Western Oklahoma and the Texas Panhandle. The Company's growth strategy is focused on adding value on a per share basis through the acquisition and exploitation of producing oil and gas properties in its core operating areas. For additional information relating to Prize Energy Corp., the Company invites you to visit its website at www.prizeenergy.com.

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements are those concerning the companies' plans, expectations and objectives for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the companies expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes reserve estimates, future financial performance, and other matters. These statements are based on certain assumptions made by the companies based on their experience and perception of historical trends, current conditions, expected future developments and other factors they believe are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the companies. Statements regarding future production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. There can be no assurance of such stability. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.