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Carbon Natural Gas Company Announces Acquisition of Natural Gas Producing Properties and Midstream Assets
Carbon Natural Gas Company Announces Acquisition of Natural Gas Producing Properties and Midstream Assets.
About this update from Carbon Energy Corporation
[{"type":"text","content":"\n \n Carbon Natural Gas Company (OTCQB:CRBO):\n \n \n On September 29, 2017, Carbon Natural Gas Company (“Carbon” or the \n “Company”), through its affiliate Carbon Appalachian Company, LLC \n (“Carbon Appalachian”), completed the acquisition of natural gas \n producing properties, natural gas gathering pipelines and related \n facilities located predominantly in the state of West Virginia for \n approximately $41,300,000, subject to normal and customary pre and \n post-closing adjustments.\n \n \n Current daily net production from the acquired assets is approximately \n 37,400 net daily mcfe of gas. The production is 99% gas. As of June 30, \n 2017, the Company estimates that the properties have 275 bcfe of Proved \n Developed Producing Reserves as determined by the Company’s qualified \n reserves evaluator using SEC pricing. The acquisition includes \n approximately 3,100 miles of natural gas pipelines and related \n compression facilities and approximately 780,000 net acres of leases, of \n which approximately 84% are held by production.\n \n \n The acquired assets will be integrated into Carbon’s existing Southern \n Appalachian Basin operations and midstream infrastructure. Carbon and \n its affiliates now have approximately 65,000 mcfe of net daily \n production from 7,900 wells, estimated proved developed producing \n reserves of 436 bcfe, approximately 4,700 miles of natural gas pipelines \n and 1,700,000 net acres of land, of which approximately 80% are held by \n production.\n \n \n Effective with the closing of the transaction, Carbon increased its \n current ownership in Carbon Appalachian to 19.37%. Carbon has the \n ability to earn additional ownership interests of Carbon Appalachian \n after a return threshold is met. Carbon is the Manager of Carbon \n Appalachian, and is reimbursed by Carbon Appalachian for general and \n administrative expenses associated with the management of the assets.\n \n \n Carbon Appalachian was formed in December 2016 by Carbon and two \n institutional investors to acquire oil and gas producing properties in \n Southern Appalachia and has an initial equity commitment of \n $100,000,000. The referenced acquisition is the third acquisition made \n during 2017 by Carbon Appalachian. Carbon will utilize the committed \n funds and its expertis...