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Carbon Natural Gas Company Announces Acquisition of Oil Producing Assets In Ventura Basin, California
Carbon Natural Gas Company Announces Acquisition of Oil Producing Assets In Ventura Basin, California.
About this update from Carbon Energy Corporation
[{"type":"text","content":"\n \n On May 1, 2018, Carbon Natural Gas Company (“Carbon” or the “Company”)(OTCQB:CRBO), \n through its subsidiary Carbon California Company, LLC, (“Carbon \n California”) completed the acquisition of oil and gas producing \n properties and related facilities located in the Ventura Basin of \n California for $43 million subject to normal and customary post-closing \n adjustments.\n \n \n The acquired assets are comprised of conventional light, sweet crude oil \n production with shallow base decline. The acquisition increases the \n volume of light oil production and proved reserves of Carbon California \n and provides for additional cash flow from Carbon’s Ventura Basin \n operating region. The acquired properties have an inventory of proved \n developed non-producing and proved undeveloped growth opportunities on \n which the Company will commence a development plan. The Company believes \n that operating synergies and economies of scale may be achieved as the \n properties are integrated into existing field operations.\n \n \n Current net production from the acquired assets is approximately 920 \n barrels of oil equivalent (boe) per day (79% oil and liquids). Based on \n reserves as of January 1, 2018 prepared by the Company’s qualified \n reserves evaluator using SEC pricing methodology, the Company estimates \n that the properties contain 17.6 million barrels of Proved Reserves (77% \n oil and liquids) comprised of 6.9 million net boe of Proved Developed \n Producing Reserves, 5.8 million net boe of Proved Developed \n Non-Producing Reserves and 4.9 million net boe of Proved Undeveloped \n Reserves.\n \n \n Carbon holds a 54% ownership interest in membership units of Carbon \n California. Carbon is Manager of Carbon California and a portion of the \n Company’s general and administrative expenses is allocated to and paid \n by Carbon California.\n \n \n Financing for the transaction was provided by the Company and an \n institutional investor, each of which purchased $5 million of Class A \n Units of Carbon California for an aggregate cash consideration of $10 \n million. In addition, Carbon California entered into an amendment to its \n existing Senior Secured Note Credit Facility to increase the borrowing \n base available under its credit facility from $15 million to $...