Mariner Energy has agreed to purchase the subsidiaries and operations of Edge Petroleum Corporation in a transaction valued at approximately $215 million after anticipated purchase price adjustments. Mariner expects the transaction to close by December 31, 2009, with an effective date of June 30, 2009. The transaction has been approved by the bankruptcy court in which Edge's Chapter 11 case is pending, subject to any appeals. Mariner will utilize its revolving credit facility to fund the acquisition.
Transaction and asset highlights include:
"Consistent with our stated strategy of expanding our onshore presence, the Edge transaction establishes a new core area for the company. Based on year-end 2008 results, the combination results in more than half of Mariner's proved reserves being onshore. The economic metrics of the transaction are compelling, potentially further enhanced by the preservation of the tax attributes. We expect the assets to generate excess cash flow while self-funding future development costs. We look forward to welcoming the Edge personnel to our company," said Scott D. Josey, Chairman, Chief Executive Officer and President of Mariner.
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