Edge Petroleum Corp. said Tuesday it will sell its assets to Mariner Energy Inc. (NYSE: ME) for $215 million, paving the way for the independent energy company to exit bankruptcy protection, according to Associated Press.
The transaction, which has been approved by a bankruptcy judge, is expected to close Dec. 31, Mariner said. It will pay for the purchase using its revolving credit facility.
MicroCap Insider is a web-based financial portal.
Sign Up for our Free Stock Newsletter
MicroCap Insider publishes a free penny stock newsletter providing stock alerts on companies positioned to deliver high-yield gains to investors.
Edge Petroleum filed for Chapter 11 protection on Oct. 10 with plans to sell its assets to a third party. Its stock trades over the counter for just 2 cents per share.
Mariner, an independent oil and gas company, said the acquisition is part of its strategy of expanding its onshore presence. It said the deal would generate excess cash flow while self-funding future development costs.
Edge Petroleum had 2008 estimated proved reserves of 124 billion cubic feet of natural gas equivalent. More than 80 percent of the reserves are located in South Texas.
Shares of Mariner fell 30 cents to $13.05 in midday trading.
Sign Up for FREE. Investors interested in receiving small cap stock alerts through the penny stock newsletter published by MicroCap Insider can sign up for free by visiting our website.
About Us
MicroCap Insider is a leading penny stock web site with extensive experience in the OTC market, providing top stock picks, investing tips and exclusive research on small cap stocks on the verge of producing large financial gains.
Please click here to read the full disclaimer.
