Source: TriDimension Energy
TriDimension Energy has entered into an agreement with an affiliate of Sanchez Resources, 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) 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, including acreage and oil and gas production in Louisiana and Mississippi, 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.