DENVER--(BUSINESS WIRE)--Carbon Natural Gas Company (OTCQB:CRBO):
On September 29, 2017, Carbon Natural Gas Company (“Carbon” or the “Company”), through its affiliate Carbon Appalachian Company, LLC (“Carbon Appalachian”), completed the acquisition of natural gas producing properties, natural gas gathering pipelines and related facilities located predominantly in the state of West Virginia for approximately $41,300,000, subject to normal and customary pre and post-closing adjustments.
Current daily net production from the acquired assets is approximately 37,400 net daily mcfe of gas. The production is 99% gas. As of June 30, 2017, the Company estimates that the properties have 275 bcfe of Proved Developed Producing Reserves as determined by the Company’s qualified reserves evaluator using SEC pricing. The acquisition includes approximately 3,100 miles of natural gas pipelines and related compression facilities and approximately 780,000 net acres of leases, of which approximately 84% are held by production.
The acquired assets will be integrated into Carbon’s existing Southern Appalachian Basin operations and midstream infrastructure. Carbon and its affiliates now have approximately 65,000 mcfe of net daily production from 7,900 wells, estimated proved developed producing reserves of 436 bcfe, approximately 4,700 miles of natural gas pipelines and 1,700,000 net acres of land, of which approximately 80% are held by production.
Effective with the closing of the transaction, Carbon increased its current ownership in Carbon Appalachian to 19.37%. Carbon has the ability to earn additional ownership interests of Carbon Appalachian after a return threshold is met. Carbon is the Manager of Carbon Appalachian, and is reimbursed by Carbon Appalachian for general and administrative expenses associated with the management of the assets.
Carbon Appalachian was formed in December 2016 by Carbon and two institutional investors to acquire oil and gas producing properties in Southern Appalachia and has an initial equity commitment of $100,000,000. The referenced acquisition is the third acquisition made during 2017 by Carbon Appalachian. Carbon will utilize the committed funds and its expertise in Southern Appalachia to pursue additional acquisitions in the region.
A description of the financing and acquisition transactions is available on the Company’s Current Report filed October 2, 2017 on Form 8-K.
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 U.S. Securities and Exchange Commission available at www.sec.gov. Any forward-looking statements speak only as at the date of this document. Except as required by applicable law, Carbon undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
Carbon Natural Gas Company is an independent oil and gas exploration and production company which owns, operates and develops oil and gas properties in the Appalachian, Illinois and Ventura Basin areas of the United States.