Doral To Pay Off Macquarie Debt With $11.5MM Divestment Of New Mexico Assets

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
10MM
Description

Acquired oil and gas assets in Eddy County, New Mexico.

Privately held, Houston-based Alamo Resources LLC has acquired interests in oil and gas assets in Eddy County, New Mexico, from Doral Energy Corp., Midland, Texas, (OTCBB: DRLY) for $10 million.

The purchase price for the Hanson property includes $10 million paid at closing and an additional $1.5 million in incentive payments.

C. K. Cooper & Co.was financial advisor to Doral.

Doral used proceeds to repay its bank debt with Macquarie Bank Ltd. under a forbearance agreement.

Doral chairman and chief executive E. Will Gray II says, "This divestiture allows Doral to satisfy all outstanding debt with Macquarie as well as all trade debt currently associated with these properties while providing the company with a positive cash balance after the divestiture."