Argent Energy Trust announce the closing of the previously announced acquisition of certain oil producing assets and an increase in its credit facility.
Argent Energy (US) Holdings Inc., a wholly-owned subsidiary of the Trust, has completed the acquisition to acquire producing petroleum properties in Wyoming (the "Wyoming Assets") from a private company, for a purchase price of approximately US$102 million (net of closing adjustments) (the "Acquisition"). Argent funded the Acquisition with its credit facility (the "Credit Facility"). The Wyoming Assets are principally oil properties in Campbell, Johnson, Crook,Weston and Niobrara counties in Wyoming. Wyoming borders on Colorado where the Trust also has producing assets, thus providing a contiguous corridor down to Texas.
The Wyoming Assets are characterized by long-lived, low decline production and are expected to generate significant free cash flow. The Acquisition is consistent with the Trust's business plan of building a high netback, low decline production base.