Parallel To Take Over Remaining 41% Stake In Texas Panhandle Property

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
189MM
Description

To acquire remaining 41% of West Panhandle Field in Carson, Hutchinson, Moore & Potter cos. in TX Panhandle with approximately 290 producing wells, gaining 7,500 BOE/d, 26.63 MMBOE proved.

Parallel Energy Trust, Calgary, (Toronto: PLT) plans to acquire the remaining 41% of West Panhandle Field, which it jointly owns with Tulsa, Okla.-based Bravo Natural Gas LLC, for US$189.4 million.

The West Panhandle Field is part of the Hugoton gas field and is in Carson, Hutchinson, Moore and Potter counties in the Texas Panhandle. The Panhandle acreage consists of approximately 290 producing wells, and exploitation and development opportunities.

Total production is expected to be up to 7,500 barrels of oil equivalent per day by March 2013. Total proved reserves as of Jan. 1 were 26.63 million barrels equivalent.

The acquisition will be financed through the issuance of new trust units and convertible debentures and advances under an increased bank facility.

The deal is expected to close by April 12.