Infinity Announces Definitive Agreement for Consolidated Sale
Infinity Energy Resources, Inc. said that it has signed a definitive purchase agreement to sell its Consolidated Oil Well Services, Inc. and CIS-Oklahoma, Inc. oilfield service subsidiaries (collectively, "Consolidated") to a privately held company. The name of the purchaser and the specific financial terms of the transaction were not disclosed. The transaction is subject to ordinary and customary closing conditions and is scheduled to close on or before December 15, 2006.
Net proceeds from the sale of Consolidated are expected to exceed the total amount of principal and interest owed by Infinity to its current senior secured note holders. Infinity plans to notify its current senior lenders that it will repay all principal and interest outstanding under its senior secured notes facility upon the closing of the sale of Consolidated. The amount of principal and interest currently outstanding under the senior secured notes facility approximates $51 million.
"We are very pleased to announce the signing of a definitive agreement, and we believe Consolidated's new owner will fully support Steve Stanfield, President, and his management team as they continue to expand their share of the oilfield pressure-pumping services market," commented Stanton E. Ross, Chief Executive Officer of Infinity. "The sale of Consolidated represents another important step in our previously announced program to enhance shareholder value, and the repayment of our senior indebtedness will allow Infinity to more effectively proceed with the exploitation of our oil and gas resources in the Barnett Shale formation in Texas and in the Rocky Mountain area.
"We continue to work with our investment banker, Capital One Southcoast, Inc., regarding the Company's shareholder value enhancement strategy, and we will issue an update on our corporate activities upon consummation of the sale of Consolidated," concluded Ross.
Infinity Energy Resources, Inc., through its wholly owned subsidiaries Infinity Oil and Gas of Texas, Inc. and Infinity Oil & Gas of Wyoming, Inc., is an independent energy company engaged in the exploration, development and production of natural gas and oil and the operation and acquisition of natural gas and oil properties. The operations of Infinity Oil and Gas of Texas are focused on exploitation of the Barnett Shale formation in the Fort Worth Basin of north-central Texas. The operations of Infinity Oil & Gas of Wyoming are focused on the Wamsutter Arch Pipeline Field in southwest Wyoming and the Sand Wash Basin in northwest Colorado. The company provides oilfield services through its wholly owned subsidiary, Consolidated Oil Well Services, Inc., with operations principally focused in the Mid-Continent region and the Powder River and Big Horn Basins in northern Wyoming. The company also has a 1.4 million acre oil and gas concession offshore Nicaragua in the Caribbean Sea.
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Company: Consolidated Oil Well Services, Inc. more info
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