On November 4, 2005, the Company signed an Amended and Restated Asset Purchase and Sale Agreement with Voyager Partners, Ltd. (Voyager), to acquire 95% of Voyager's interest in producing and non-producing natural gas properties located in Denton and Wise Counties, on the fairway of the prolific Barnett Shale play in the North Texas Fort Worth Basin.
As previously announced on November 7, 2005, the acquisition of the Springside Properties was the result of Voyager's assignment to Dune of a third party contract. Such assignment is in addition to $68.3 million of Barnett Shale properties to be acquired from Voyager.
"I am very pleased with the acquisition of the Springside Properties," stated Alan Gaines, Chairman and Chief Executive Officer. "We are confident that this transaction represents the first step with respect to our recently announced agreement with Voyager, which provides for the rolling purchase of approximately $68 million of high quality assets located on the fairway of the Barnett Shale play. The next closing, consisting of Barnett Shale properties with an allocated value of at least $25 million, is scheduled to occur on or before December 15, 2005."
The previously reported Credit Agreement with Standard Bank Plc was signed on November 17, 2005, and is now in place. The Credit Agreement provides for a revolving credit commitment of up to $50 million with sub-limits of $13 million, and $16 million, respectively, for term loans, subject to certain covenants and conditions. Additional financing totaling $25 million of subordinated debt is also in place. The Company has drawn down a $6 million revolving loan under the Credit Agreement in connection with the purchase of the Springside Properties.
Most Popular Articles