Crew Energy – the light oil and natural gas producer – paid $36 million for an option to acquire the assets, to be exercised by the beginning of this week, with a closing date of on or before July 9th. In a news release today, Terra confirms it intends to utilize the net proceeds from the sale to further reduce its indebtedness.
The transaction comes at a time when the improved price of natural gas continues to hover around $4 U.S. and monthly sales of crown petroleum and natural gas rights have improved. Last month’s sale of just over $21 million in bonus bids pushed the 2013 calendar year total to about $118.3 million, as compared to about $82 million for the first five months of last year.
Even more encouraging is the fact the total for the last three months, of $103.6 million, is more than four times the amount for the same period in 2012.