2010-01-07-2009-11-20-2010-01-04

To acquire company with assets in TX, OK, MT, ND, gaining 206 Bcfe proved.

Austin, Texas-based, privately held Jones Energy Ltd. via subsidiary J/M Crusader Acquisition Sub LLC plans to acquire all the interests of bankrupt Crusader Energy Group Inc., Oklahoma City, (Pink Sheets: CKGRQ) for $289 million as the successful bidder through a bankruptcy court auction. The Midcontinent-focused Crusader filed for Chapter 11 protection under the U.S. Bankruptcy Code in the Northern District of Texas on March 30 following a borrowing-base redetermination that left the company $5 million deficient. Jones will acquire all Crusader shares that will be issued through the reorganization plan. Jones agreed to pay a combination of cash and 22% of the net cash flow from certain Crusader properties after the closing. Jones will pay $240.5 million in cash and approximately $48.5 million to Crusader creditors from the ongoing cash flow. Crusader shareholders will not receive any distribution under the plan. As of year-end 2008, Crusader proved reserves were 206 billion cubic feet equivalent (73 billion proved developed producing; 17 billion proved developed nonproducing). Annual production for 2008 was approximately 10.7 billion cubic feet equivalent. It holds 1.015 million gross acres (442,000 net). SandRidge Energy Inc., Oklahoma City, (NYSE: SD) previously bid to acquire Crusader in a deal valued at $230 million but backed out of the bidding when additional proposals were submitted. Closing was expected during the fourth quarter. In addition, Gunn Oil Co., Cogent Exploration Ltd. and Apollo Exploration LLC have acquired Crusader assets in the Whittenburg Basin in the Texas Panhandle via Section 363 of the U.S. Bankruptcy Code involving interests not included in the corporate sale. The companies paid $400,000 in cash and assumed approximately $9.9 million of contractual obligations for a total deal value of $10.3 million. Jefferies & Co. Inc. is financial adviser to Crusader in its Chapter 11 reorganization. Vinson & Elkins LLP is restructuring and reorganization counsel to Crusader.