TriDimension Energy Announces Agreement to Sell Oil and Gas Assets

Oct 19, 2010, 22:50 ET from TriDimension Energy, L.P.

DALLAS, Oct. 19 /PRNewswire/ -- TriDimension Energy, L.P. today announced that it has entered into an agreement with an affiliate of Sanchez Resources, LLC pursuant to which Sanchez will purchase substantially all of the oil and gas assets of TriDimension Energy and its subsidiaries in a sale pursuant to Section 363 of the United States Bankruptcy Code.  As previously announced, TriDimension Energy, L.P. and seven of its affiliated companies (Axis E&P, LP, Axis Onshore, LP, Axis Marketing, LP, Ram Drilling, LP, TDE Property Holdings, LP, TDE Operating GP LLC, and TDE Subsidiary GP LLC) (collectively, the "Company") filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division, on May 21, 2010.  

Sanchez agreed to a $28 million cash purchase price for the Company's assets, subject to certain adjustments including for title or environmental defects identified prior to the deadline for submission of alternative transaction proposals (to be established pursuant to the bid procedures referenced below) and customary adjustments for the economic performance of the assets from November 1, 2010 to Closing.  The closing of the transaction is subject to customary conditions, including approval by the Bankruptcy Court and consideration of alternative transactions that may be submitted prior to a deadline to be approved by the Bankruptcy Court. Until the entry of the Bankruptcy Court order approving the bid procedures pursuant to which proposals for an alternative transaction involving TriDimension and its subsidiaries may be submitted, TriDimension and its representatives are restricted under the Sanchez agreement from soliciting alternative transactions or engaging in discussions or negotiations with potential interested parties.

Vinson & Elkins LLP is lead bankruptcy counsel to the Company, and Ottinger Hebert, L.L.C. is special counsel to the Company.  Stephens Inc. acts as financial adviser to the Company in the Chapter 11 reorganization and advised the Company on this transaction.  

For more information concerning the bankruptcy cases of TriDimension Energy, L.P. and its seven affiliates, including the Sanchez purchase agreement, please visit the Company's claims and noticing agent's web site at www.bmcgroup.com/restructuring/restructuring.aspx and select "TriDimension Energy LP" from the Bankruptcy Case Info Finder or Joe Allio at Stephens Inc. at (214) 258-2764.

ABOUT TRIDIMENSION ENERGY

TriDimension Energy, L.P. and its operating subsidiaries, TDE Property Holdings, LP, Axis E&P, LP, Axis Onshore, LP, Axis Marketing, LP, and Ram Drilling, LP, are engaged in the acquisition, development, exploration, production, and sale of oil and natural gas in Louisiana and Mississippi.  

FORWARD-LOOKING STATEMENT DISCLOSURE

This press release contains "forward-looking statements" within the meaning of the Federal securities laws and regulations. Forward-looking statements are estimates and predictions by management about the future outcome of events and conditions that could affect TriDimension's business, financial condition and results of operations. We use words such as, "will," "should," "could," "plans," "expects," "likely," "anticipates," "intends," "believes," "estimates," "may," and other words of similar expression to indicate forward-looking statements.

There is no assurance that the estimates and predictions contained in our forward-looking statements will occur or be achieved as predicted. Any number of factors could cause actual results to differ materially from those referred to in a forward-looking statement.  Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but are not limited to that the proposed transaction may not be completed for reasons including because conditions precedent to the completion of the acquisition may not be satisfied.   The Company undertakes no obligation to publicly update or revise any forward-looking statement.

SOURCE TriDimension Energy, L.P.