Eastern American Natural Gas Trust Announces Developments in Sale of Royalty NPI
05 Novembre 2012 - 11:30PM
Business Wire
EASTERN AMERICAN NATURAL GAS TRUST (NYSE: NGT) announced today
that the sponsor of the Trust, Energy Corporation of America
(“ECA”) has today exercised its right of first refusal to acquire
the Trust’s Royalty NPI. Consequently, the Purchase and Sale
Agreement dated October 24, 2012 between the Trust, as seller, and
Softvest, LP, as buyer (the “Softvest Agreement”), has terminated
in accordance with its terms. In lieu of selling the Royalty NPI to
Softvest, the Trust will sell the Royalty NPI to ECA for the
purchase price determined by the Softvest Agreement which, based on
the closing price of the NYMEX December 2012 contract on November
2, 2012, is $5,917,264. The sale is expected to close in January
2013. Net proceeds of the sale, after payment of expenses of the
sale and any other expenses of the Trust, and subject to any
reserves the Trustee may establish in connection with the
termination of the Trust, are expected to be distributed as part of
the final distribution from the Trust to unitholders of record as
of the record date for the quarterly period ending March 31,
2013.
Pursuant to the Softvest Agreement, Softvest had the right to a
reduction of the purchase price in the event of defects in title to
the Royalty NPI. However, in connection with its exercise of its
right of first refusal, ECA noted that it will not require any
review of the status of title to the Royalty NPI. Consequently, the
Trust does not anticipate any reduction of the price for title
issues.
Although not required by the terms of the Softvest Agreement or
by ECA’s right of first refusal, ECA also agreed to reimburse the
Trust, for the benefit of the Trust unitholders, for any amounts
the Trust may be required to pay to Softvest as reimbursement of
Softvest’s expenses pursuant to Section 8.2 of the Softvest
Agreement.
The Trustee expects that a sale of the NPI to ECA rather than to
a third party purchaser may reduce the Trust’s expenses relating to
the sale (other than the previously-disclosed fee payable to
EnergyNet.com, Inc., which is expected to be $158,345) and may
reduce the amount of any reserves the Trustee may establish in
connection with the termination of the Trust.
Eastern American Natural Gas Trust is a grantor trust, which
holds net profit interests in approximately 600 producing gas wells
located in West Virginia and Pennsylvania. The Trust will terminate
and be liquidated in 2013.
This press release may contain statements that are
“forward-looking statements” within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. All statements
contained in this press release, other than statements of
historical facts, are “forward-looking statements” for purposes of
these provisions. An investment in Units issued by Eastern American
Natural Gas Trust is subject to the risks described in the Trust’s
Annual Report on Form 10-K for the year ended
December 31, 2011, and all of its other filings with the
Securities and Exchange Commission. The Trust’s annual, quarterly
and other filed reports are available over the Internet at the
SEC’s web site at http://www.sec.gov.
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