Petrosearch Energy Corporation has executed an authorization to the general partner of DDJET Limited LLP Partnership (DDJET) to immediately commence a sales marketing program to interested potential purchasing parties in order to fully assess the current market value of DDJET. The DDJET assets include leasehold acreage, existing wells, equipment, pipelines and rights of way in the prolific Barnett Shale region of the Fort Worth Basin. The Company's subsidiary holds a 5.5445% limited partnership interest in DDJET. The Company has no obligation to sell its DDJET interest and retains all of the rights under the DDJET partnership agreement in the event of a proposed sale by the partners in which the Company chooses not to participate.
The Board of Directors of the Company has retained Friedman, Billings, Ramsey & Co., Inc. (FBR) to advise the Board in connection with a review of strategic alternatives that may be available to the Company in connection with the possible DDJET divestiture. The marketing of the DDJET interests presents the Company with various options which include: 1) selling the Company's interest in DDJET at an acceptable price; 2) utilizing certain preferential rights afforded the Company under the Partnership Agreement to acquire all or a part of the non-Company interests by venturing with a strategic industry or financial partner; or 3) retaining its current position in DDJET with new and/or existing partners. To date, the Company and FBR have held confidential discussions with a limited number of potential strategic and financial partners and expect to continue the investigation of available options as the DDJET sales process moves forward.
There can be no assurance that the DDJET partnership sale effort will result in any agreements or transactions. The Company does not intend to disclose developments with respect to the sale effort or its review of related strategic alternatives unless and until its Board of Directors has made a decision regarding a specific course of action.
DDJET continues to acquire strategic leasehold acreage in the area of interest and will continue its current drilling and completion program.
Richard Dole, the Company's President and CEO, stated that "We are pleased with the options the Company has related to the proposed sale of DDJET and we believe the Company is in a unique position as both a potential buyer and seller. Given the appetite in the industry for quality Barnett Shale assets, as evidenced by recent transactions in the region, we plan to pursue all the options this situation affords to Petrosearch and utilize the one that will create the most value for our shareholders."
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