Argent Buys South Texas Assets

To buy 117,273 net acres in South Texas.

U.S. Opco, a subsidiary of Calgary-based Argent Energy Trust, plans to buy 117,273 net acres in South Texas from Denali Oil & Gas Partners III LLC for $167 million in cash and carry.

The purchase price is net of $36.6 million, which will be held in escrow and applied to capital expenditures and general and administrative expenses on the Denali assets for the 24 month period after closing.

In addition, U.S. Opco will pay Denali $18 million over a three year period commencing January 1, 2013 in respect of the Deep Rights and will pay an additional US$30 million for additional interests in the Deep Rights upon the occurrence of certain events.