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Carbon Natural Gas Company Announces Formation of Carbon California Company, LLC and Acquisition of Oil Producing Assets and Related Financing
Carbon Natural Gas Company Announces Formation of Carbon California Company, LLC and Acquisition of Oil Producing Assets and Related Financing.
About this update from Carbon Energy Corporation
[{"type":"text","content":"\n \n Carbon Natural Gas Company (OTCQB:CRBO):\n \n \n On February 15, 2017, Carbon Natural Gas Company (“Carbon” \n or the “Company”), entered into a Limited Liability \n Company Agreement (“LLC Agreement”) of Carbon California \n Company, LLC, (“Carbon California”) established by the \n Company and, through Carbon California, completed a financing of $47 \n million and acquisition of oil and gas producing properties and related \n facilities located in the Ventura Basin of California for approximately \n $38,500,000, subject to normal and customary post-closing adjustments. \n The remainder of the net proceeds above the purchase price of the assets \n will be used to fund an inventory of field development and enhancement \n projects, future similar complementary producing property acquisitions \n and for general working capital purposes of Carbon California. Carbon \n California expects to commence the initial field production enhancement \n projects during mid-2017.\n \n \n The acquired assets are comprised of conventional crude oil production \n with high gravity, low sulfur and low base decline producing attributes. \n The acquisitions will allow Carbon to increase the oil component of its \n production base and will provide for oil weighted production, cash flow \n and reserves growth opportunities. The Company believes that additional \n similar oil properties in the Ventura Basin are available for \n acquisition and development and will pursue those opportunities through \n Carbon California during 2017.\n \n \n Current net production from the acquired assets is approximately 770 \n barrels of oil equivalent (boe) per day (65% oil and liquids). Based on \n internally estimated reserves as of January 1, 2017, prepared by the \n Company’s qualified reserves evaluator using SEC pricing methodology at \n December 31, 2016, the Company estimates that the properties contain 4.2 \n million net boe of Proved Developed Producing Reserves and 3.4 million \n net boe of Proved Developed Non-Producing Reserves.\n \n \n Pursuant to the LLC Agreement, Carbon acquired a 17.813% membership unit \n interest in Carbon California and will be the sole manager of Carbon \n California. The units were acquired for no cash consideration. In \n connection with its role as the sole manager of C...