CARBON NATURAL GAS COMPANY (OTCMKTS:CRBO) Files An 8-K Other EventsItem 8.01. Other Events
On September 29, 2017, Carbon Appalachian Company, LLC (“Carbon Appalachian”), a venture owned by Carbon Natural Gas Company, a Delaware corporation (“Carbon” or the “Company”) and two institutional investors, completed the acquisition of natural gas producing properties, natural gas gathering pipelines and related facilities located predominantly in the State of West Virginia (the “Acquisition”). The purchase price was $41.3 million, subject to normal and customary pre and post-closing adjustments. Carbon Appalachian will also fund, as part of the Acquisition, an inventory of field development and enhancement projects and general working capital.
In connection with and concurrently with the closing of the Acquisition described above, Carbon Appalachia Enterprises, LLC (f/k/a Carbon Tennessee Company, LLC), an indirect subsidiary of Carbon Appalachian, borrowed $20.4 million from its existing senior secured asset-based revolving credit facility (the “Credit Facility” and such agreement being the “Credit Agreement”) with LegacyTexas Bank and East West Bank and received additional funding in the amount of $11 million from its members, including $2,915,000 from Carbon. The contributed funds and funds drawn from the Credit Facility were used to pay the purchase price.
On October 2, 2017, the Company issued a press release concerning certain events relating to this Item 8.01. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
Section 9 – Financial Statements and Exhibits
Item 8.01 Financial Statements and Exhibits.
| Exhibit No. | Description |
| 99.1* | Press Release dated October 2, 2017 |
* Filed herewith
Carbon Natural Gas Co ExhibitEX-99.1 2 f8k100217ex99-1_carbon.htm PRESS RELEASE DATED SEPTEMBER 29,…To view the full exhibit click here
About CARBON NATURAL GAS COMPANY (OTCMKTS:CRBO)
Carbon Natural Gas Company (Carbon) is a holding company. The Company owns and operates oil and natural gas and oil interests in the Appalachian and Illinois Basins of the United States. The Company produces and sells oil, natural gas, natural gas condensate and natural gas liquids. Carbon conducts its oil and natural gas operations through Nytis LLC. Carbon’s oil and gas properties are located in Illinois, Indiana, Kentucky, Ohio, Tennessee and West Virginia. Nytis LLC owns working interests in approximately 850 gross wells (over 570 net) and royalty interests located in Kentucky, Ohio, Tennessee and West Virginia, and has leasehold positions in approximately 17,000 net developed acres and over 184,800 net undeveloped acres. Nytis LLC owns working interests in approximately 60 gross (over 30 net) coalbed methane wells in the Illinois Basin, and has a leasehold position in approximately 1,700 net developed acres and over 66,700 net undeveloped acres.
