TriDimension Energy Announces Consummation of Sale of Oil and Gas Assets

Dec 09, 2010, 17:38 ET from TriDimension Energy, L.P.

DALLAS, Dec. 9, 2010 /PRNewswire/ -- TriDimension Energy, L.P. today announced the consummation of the previously announced transaction with SR Acquisition I, LLC ("SR Acquisition"), an affiliate of Sanchez Resources, LLC, pursuant to which SR Acquisition has purchased 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 title 11 of the United States Code in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division (the "Bankruptcy Court"), on May 21, 2010.

SR Acquisition was the successful bidder at an auction conducted on Tuesday, November 16, 2010, pursuant to the bid procedures approved by the Bankruptcy Court in the Company's bankruptcy proceedings. The transaction with SR Acquisition was approved pursuant to a sale order entered on November 19, 2010 by the Honorable Stacey G. C. Jernigan, United States Bankruptcy Judge.  

After giving effect to certain adjustments, including for asserted environmental defects and for the economic performance of the assets from November 1, 2010 to closing, the cash consideration paid by SR Acquisition at closing was approximately $30.5 million.  Approximately $2.85 million of additional proceeds were placed in escrow pending the resolution of asserted environmental defect claims.

Vinson & Elkins LLP is lead bankruptcy and M&A counsel to the Company, and Ottinger Hebert, L.L.C. is special counsel to the Company. Stephens Inc. acts as 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 SR Acquisition 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 contact Joe Allio at Stephens Inc. at (214) 258-2764.

SOURCE TriDimension Energy, L.P.