Sanchez Midstream Partners LP (FRA:SHY1) Files An 8-K Entry into a Material Definitive AgreementItem 1.01Entry into a Material Definitive Agreement.
Purchase and Sale Agreement
On June 30, 2017, SEP Holdings IV, LLC (the “Seller”), a wholly-owned subsidiary of Sanchez Midstream Partners LP (the “Partnership”), entered into that certain Purchase and Sale Agreement (the “Purchase Agreement”) with Sendero Petroleum, LLC (“Buyer”) to which the Seller has agreed to sell to the Buyer, effective as of the closing date, specified oil and gas wells, leases and other associated assets and interests located in Texas for cash consideration of $6,250,000, subject to adjustment for title and environmental defects.In addition, the Buyer has agreed to assume all obligations relating to the assets, including all plugging and abandonment costs relating to the assets.
The Purchase Agreement contains customary representations and warranties by the Seller and the Buyer, and the Seller and the Buyer have agreed to customary indemnities relating to breaches of representations, warranties and covenants and the payment of assumed and excluded obligations.The transaction contemplated by the Purchase Agreement is anticipated to close during the third quarter of 2017, subject to the accuracy of the representations and warranties of the parties in the Purchase Agreement, compliance by the parties with the covenants contained therein, no litigation restraining a party’s ability to consummate the transaction, and the obtainment of any material consents and approvals.
The foregoing description of the Purchase Agreement is a summary and is qualified in its entirety by the full text of the Purchase Agreement, which will be filed by the Partnership in its next quarterly report on Form 10-Q.
Item 8.01 Other Events.
In connection with the Purchase Agreement, the Partnership issued a press release on July5, 2017 announcing the transaction.A copy of the press release is filed as Exhibit 99.1 hereto and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
99.1Press Release, dated July 5, 2017