Carbon Natural Gas Company Announces Acquisition of Natural Gas Producing Properties and Midstream Assets
Carbon Appalachian will also fund as part of the acquisition an inventory of field development and enhancement projects and general working capital.
Current daily net production from the acquired assets is approximately
7,500 net daily mcf of gas. The production is 100% gas. As of
Effective with the closing of the transaction, Carbon increased its current ownership in Carbon Appalachian to 16% from 3%. Carbon also has the ability to earn additional ownership interests of Carbon Appalachian after a return threshold is met. Carbon is the Manager of Carbon Appalachian. The Company’s general and administrative expenses associated with the management of the assets will be reimbursed by Carbon Appalachian.
Carbon Appalachian was formed by Carbon and two institutional investors
to acquire producing assets in Southern Appalachia and has an initial
equity commitment of
A description of the financing and acquisition transactions is available
on the Company’s Current Report filed
Certain statements, including those regarding the estimates of oil and gas reserves, production and the availability of complementary acquisitions, contained in this communication regarding matters that are not historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995).
These include statements regarding management’s intentions, plans,
beliefs, expectations or forecasts for the future. Such forward-looking
statements are based on the current expectations of Carbon and involve
risks and uncertainties; consequently, actual results may differ
materially from those expressed or implied in the statements. Factors
that could cause actual results to differ, possibly materially, from
those in the forward-looking statements are discussed throughout the
Company’s periodic filings with the
Carbon Natural Gas Company
Kevin D. Struzeski, 720-407-7030
Chief Financial Officer