DENVER, Jan. 4 /PRNewswire/ -- Ellora Energy, an independent oil and gas company engaged in the acquisition, exploration, development and production of onshore domestic oil and gas properties, today announced the execution of a definitive agreement to sell its southwest Kansas (Hugoton Field) and southeast Colorado properties to an undisclosed buyer.
Under the terms of the agreement, Ellora Energy will receive $247 million for all of its operated and non-operated properties in Kansas and southeast Colorado effective as of January 1, 2010. For the quarter ending September 30, 2009 the sold properties produced 30.6 MMcfe/d, comprised of 52% natural gas and 48% oil. The transaction is expected to close in the first quarter of 2010 and is subject to normal closing conditions.
T. Scott Martin, Chairman and Chief Executive Officer of Ellora Energy, said, "The proceeds from the sale will allow us to significantly reduce our debt and more aggressively pursue our efforts to maximize the value of our lease position in the dynamic Haynesville Shale gas play in East Texas. We believe now is the appropriate time in Ellora's life cycle to put our focus more squarely on the Haynesville play as we continue to explore our strategic options."
Steve Enger, President and Chief Operating Officer of Ellora Energy, said, "For the past several years we have focused on improving our approach to developing this huge leasehold position in the deeper horizons of the prolific Hugoton field. We have achieved meaningful production growth, strengthened our land position and created additional opportunities in the play by successfully applying exploration technology. We believe the new owner will continue to find this an attractive opportunity for future development."
ABOUT ELLORA ENERGY
Ellora Energy Inc. is an independent oil and gas exploration and production company headquartered in Boulder, Colorado. Ellora has oil and gas assets principally located in East Texas/Louisiana in the James Lime and Haynesville shale plays.
Certain statements included in this press release may be considered forward-looking, which may be characterized by words such as "plan", "expect", project", "intend", believe", and "anticipate". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to Ellora. Actual events may differ materially from current expectations, and Ellora disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations Steve Enger (303) 444-8881
SOURCE Ellora Energy Inc.