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                                                                    EXHIBIT 99.1


                 COHO UNABLE TO REACH AGREEMENT WITH HICKS MUSE


DALLAS--(BUSINESS WIRE)--Feb. 12, 1999--Coho Energy, Inc., (Nasdaq: COHO - news)
announced today that it has been unable to reach an agreement for a restructure 
of its original contract with Hicks, Muse, Tate & Furst ("Hicks Muse") 
providing for the Company's issuance of $250 million of equity.

Last December, Hicks Muse had informed the Company that it was not willing to 
close the Company's original agreement, but that it would be willing to 
restructure the transaction such that the share price would be $4 per share 
rather than the $6 per share as had been approved by the shareholders in 
December. The Company has been working with Hicks Muse to reach a new agreement 
since Dec. 11 and after working through all of the issues with all of the 
interested parties related to such a change and negotiating an agreement which 
was expected to be signed this week, Hicks Muse has informed the Company that 
it is no longer interested in the investment and it would not honor its 
commitment to the Company.

In light of the foregoing facts, the Company is continuing to consider all of 
its options. The Company expects any such options would need to include an 
arrangement with the Company's lenders under the Company's existing credit 
arrangements but there can be no assurance that any such agreement can be 
reached.

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Contact:

Coho Energy, Inc., Dallas
Jeffrey Clarke/Anne Marie O'Gorman, 972/774-8300