Cubic Energy, Inc. has closed and funded the previously announced acquisition of all of the East Texas assets of Gastar Exploration, Texas, LP (Gastar), paying to Gastar a net purchase price cash balance of $39,188,830. The Company also announced that it has closed on an additional transaction to acquire a minority working interest position in leases, and their associated well bore and infrastructure interests, in the same properties the Company has acquired from Gastar, for $19,400,000 from a third-party.
This additional acquisition includes approximately 6,400 net acres in Leon and Robertson Counties, Texas. The Company also has closed on the acquisition of Northwest Louisiana assets from Tauren Exploration, Inc. (Tauren), an affiliate of the Company's CEO, Calvin Wallen III (Wallen), which includes approximately 5,600 net acres, well bores, infrastructure and production. As consideration for the acquisition of these Tauren assets, the Company is paying $4,000,000 in cash and delivering 2,000 shares of a new Series B Convertible Preferred Stock with a stated value of $1,000 per share ("Series B"). The Series B is entitled to dividends at a rate of 9.5% per annum and, subject to certain limitations, is convertible into the Company's common stock at a conversion rate of $0.50 per common share.