Key Developments For NGAS Resources, Inc.
NGAS Resources, Inc. (NGAS.O) (Nasdaq)
NGAS Resources, Inc. Closes Sale Of Remaining Interest In Gathering System For $22 Million
NGAS Resources, Inc. announced that it has closed the sale of its remaining 50% interest in 485 miles of Appalachian gas gathering facilities to Seminole Energy Services (SES) for $22 million. The purchase price was paid $7.5 million at closing, with the balance of $14.5 million payable by SES in monthly installments through December 2011. The sale completed a mid-July monetization of the initial half interest in the gathering system to a subsidiary of SES for $28 million and was triggered by NGAS' exercise of put rights that it acquired at that time.
NGAS Resources, Inc. Announces Resizing Common Stock And Warrant Offering
NGAS Resources, Inc. announced that it has replaced its previously reported offering of 5.4 million units with a new registered direct public offering of 3.48 million units at the same offering price of $1.90 per unit. The resized offering was conducted by the company and its underwriter to ensure compliance with NASDAQ listing standards. The other terms of the transaction are unchanged from the previously reported offering. The Company's proceeds will be approximately $6.6 million before underwriting discounts and offering expenses. Each unit consists of one share of the Company's common stock and a warrant to buy 0.5 share of common stock, for a total of 1.74 million warrants. The warrants will be exercisable for four years, beginning six months after issuance, at an exercise price of $2.35 per common share. The transaction is expected to close on or about August 13, 2009.
NGAS Resources, Inc. Announces Pricing of Common Stock And Warrant Offering
NGAS Resources, Inc. announced that it has priced a registered direct public offering of 5.4 million units, at a price of $1.90 per unit, for proceeds of approximately $10.3 million before underwriting discounts and offering expenses. Each unit consists of one share of the company's common stock and a warrant to buy 0.5 share of common stock. The warrants will be exercisable for four years, beginning six months after issuance, at $2.35 per common share. The transaction is expected to close on or about August 11, 2009. BMO Capital Markets Corp. is acting as sole underwriter for this offering. The company intends to use the net proceeds from the offering to reduce its outstanding borrowings under its revolving credit facility.
NGAS Resources, Inc. Closes $28 Million Sale Of Gas Gathering Assets
NGAS Resources, Inc. announced that it has closed the sale of a 50% undivided interest in 485 miles of Appalachian gas gathering facilities to Seminole Gas Company for $28 million. The gas gathering system spans parts of southeastern Kentucky, eastern Tennessee and western Virginia, and interconnects with Spectra's East Tennessee Interstate pipeline network. NGAS applied all of the sale proceeds to reduce its credit facility to $52 million. As part of the transaction, Seminole Energy Services, the parent company of Seminole Gas, will have a six-month option to purchase NGAS' remaining 50% interest in the gathering system for $22 million. Under certain conditions, NGAS may require Seminole Energy to exercise its purchase option. If the purchase option is exercised, NGAS will use the proceeds to further reduce bank debt. The purchase price will be payable $7.5 million upon exercise of the option and the balance over 30 months, with interest at 8% per annum.
NGAS Resources, Inc. Enters Agreement for Sale of Gas Gathering Assets
NGAS Resources, Inc. announced that it has entered into an asset purchase agreement with Seminole Gas Company, its gas processing partner, for the sale of a 50% undivided interest in most of the Company's Appalachian gas gathering facilities for $28 million. The portion of the Company's gas gathering and midstream facilities covered by the purchase agreement spans 485 miles through parts of southeastern Kentucky, eastern Tennessee and western Virginia. The sale is expected to close by the middle of June 2009.
