Crimson Exploration Inc. and its operator-partner have entered into a series of agreements under which they have agreed to sell their interests in wells and undeveloped acreage in the Fort Worth Barnett Shale Play in Johnson and Tarrant counties Texas to an undisclosed buyer.

Crimson owns a 12.5% non-operating working interest in the assets being sold. Closing on the transaction, which is contingent upon the satisfaction of certain closing conditions by the buyer and sellers, is expected to close by the end of the first quarter of 2008.

The final consideration to be paid by the buyer will be based on existing wells and undeveloped acreage owned by the Company and its partner at the time of closing. The Company and its partner will continue to drill wells, and accumulate acreage, until the time of closing. The Company's share of the estimated final consideration is projected to be between $28 and $32 million. Proceeds to be received by the Company for its interest will be used to repay amounts outstanding under its revolving credit facility, with no reduction in borrowing base on the revolver anticipated.

Crimson recognized no proved reserves in its 141 bcfe of proforma, third-party engineered proved reserves as of December 31, 2006 (proforma for the May 2007 acquisition of proved reserves from EXCO Resources, Inc.), and has not recognized any meaningful revenue or production during 2007 from the wells drilled in the Barnett Shale during 2007.

Tags: Crimson Exploration Inc.