Crimson Exploration Inc. reported the closing and funding on the previously announced sale of its interests in wells and acreage in the Ft. Worth Barnett Shale play in Johnson and Tarrant counties, Texas. Crimson received, in two separate closings, net proceeds from the purchaser of approximately $31 million and has used those proceeds to pay down current amounts outstanding under its revolving credit facility. A third and smaller final close is expected to occur by the middle of April; however, the proceeds received to date represent substantially all of the expected final consideration. The proved reserves sold represent less than one percent of the Company's reported yearend 2007 proved reserves, and production from the Barnett Shale wells sold represents only approximately two percent of the Company's current daily average production.
Allan Keel, President and Chief Executive Officer of the Company, commented: "We are extremely pleased with the end result on this project. When we joined our partner on pursuing the Barnett Shale in such a competitive area, we anticipated that this would be at least a two year project. However, due to our partner's commitment to focused manpower resources, and aggressive leasing efforts in the field, we were able to more than double our investment in approximately one year."
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