EX-99.1
4
f8k123118ex99-1_carbon.htm
PRESS RELEASE DATED JANUARY 7, 2019
Exhibit 99.1
Carbon Energy Corporation
Acquisition of Membership Units
and
Natural Gas Producing Properties and
Midstream Assets
of
Carbon Appalachian Company, LLC.
Denver, Colorado January 7, 2019
Carbon Energy Corporation (OTCQB:CRBO)
On December 31, 2018, Carbon Energy Corporation
("Carbon"), completed the acquisition of membership units representing 73.50% of Carbon Appalachian Company, LLC. Pursuant
to the closing of the acquisition, Carbon now owns 100% of the membership units of Carbon Appalachian Company, LLC and therefore
owns and controls 100% of the producing properties, natural gas gathering pipelines and related facilities of Carbon Appalachian
Company, LLC and its subsidiaries. The purchase price for the membership units was approximately $58,000,000 subject to normal
and customary pre and post-closing adjustments. Financing for the transaction was provided by the utilization of funds under a
$500 million amended and restated senior secured credit facility with an initial borrowing base of $75,000,000, a term loan in
the amount of $15,000,000 provided under the credit facility and a promissory note issued to the seller of approximately $25,000,000.
Prior to the acquisition, the assets were
managed by Carbon on behalf of Carbon Appalachian Company, LLC and were integrated into Carbon's Southern Appalachian Basin
operations and midstream infrastructure.
Following the close of the transaction, Carbon's
Appalachian assets will be comprised of approximately 62,700 mcfe of net daily production, approximately 4,720 miles of natural
gas pipelines and approximately 1,650,000 net acres of leasehold.
In addition to its Appalachian asset base,
Carbon through its affiliate Carbon California Company, LLC owns and operates oil and natural gas producing properties and related
facilities in the Ventura Basin of California comprised of approximately 1,745 barrels of net daily oil and liquids equivalent
production.
A description of the financing and acquisition transaction is
available on the Company's Current Report filed January 7, 2019 on Form 8-K.
Forward-Looking Statements
Certain statements, including those regarding
the estimates of oil and gas reserves and production, contained in this communication regarding matters that are not historical
facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995).
These include statements regarding management's
intentions, plans, beliefs, expectations or forecasts for the future. Such forward-looking statements are based on the current
expectations of Carbon and involve risks and uncertainties; consequently, actual results may differ materially from those expressed
or implied in the statements. Factors that could cause actual results to differ, possibly materially, from those in the forward-looking
statements are discussed throughout the Company's periodic filings with the U.S. Securities and Exchange Commission available
at www.sec.gov. Any forward looking statements speak only as at the date of this document. Except as required by applicable law,
Carbon undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result of new information,
future events or otherwise.
Carbon Energy Corporation is an independent
oil and gas exploration and production company which owns, operates and develops oil and gas properties in the Appalachian, Illinois
and Ventura Basin areas of the United States.
Contact:
Kevin D. Struzeski
Chief Financial Officer
1700 Broadway
Suite 1170
Denver, Colorado 80290
720 407 7030
1700
Broadway, Suite 1170, Denver, Colorado 80290
Telephone
720 407 7030 Facsimile 720 407 7031
2480
Fortune Drive, Suite 300, Lexington, Kentucky 40509
Telephone
859 299 0771 Facsimile 859 299 0772
270
Quail Court, Suite B, Santa Paula, California 93060
Telephone
805 933 1901

EX - 99 . 1 4 f8k123118ex99 - 1 _ carbon . htm PRESS RELEASE DATED JANUARY 7 , 2019 Exhibit 99 . 1 Carbon Energy Corporation Acquisition of Membership Units and Natural Gas Producing Properties and Midstream Assets of Carbon Appalachian Company , LLC . Denver , Colorado January 7 , 2019 Carbon Energy Corporation ( OTCQB : CRBO ) On December 31 , 2018 , Carbon Energy Corporation ( " Carbon " ) , completed the acquisition of membership units representing 73 . 50 % of Carbon Appalachian Company , LLC . Pursuant to the closing of the acquisition , Carbon now owns 100 % of the membership units of Carbon Appalachian Company , LLC and therefore owns and controls 100 % of the producing properties , natural gas gathering pipelines and related facilities of Carbon Appalachian Company , LLC and its subsidiaries . The purchase price for the membership units was approximately $ 58,000,000 subject to normal and customary pre and post - closing adjustments . Financing for the transaction was provided by the utilization of funds under a $ 500 million amended and restated senior secured credit facility with an initial borrowing base of $ 75,000,000 , a term loan in the amount of $ 15,000,000 provided under the credit facility and a promissory note issued to the seller of approximately $ 25,000,000 . Prior to the acquisition , the assets were managed by Carbon on behalf of Carbon Appalachian Company , LLC and were integrated into Carbon 's Southern Appalachian Basin operations and midstream infrastructure . Following the close of the transaction , Carbon 's Appalachian assets will be comprised of approximately 62,700 mcfe of net daily production , approximately 4,720 miles of natural gas pipelines and approximately 1,650,000 net acres of leasehold . In addition to its Appalachian asset base , Carbon through its affiliate Carbon California Company , LLC owns and operates oil and natural gas producing properties and related facilities in the Ventura Basin of California comprised of approximately 1,745 barrels of net daily oil and liquids equivalent production . A description of the financing and acquisition transaction is available on the Company 's Current Report filed January 7 , 2019 on Form 8 - K . Forward - Looking Statements Certain statements , including those regarding the estimates of oil and gas reserves and production , contained in this communication regarding matters that are not historical facts are forward - looking statements ( as defined in the Private Securities Litigation Reform Act of 1995 ) . These include statements regarding management 's intentions , plans , beliefs , expectations or forecasts for the future . Such forward - looking statements are based on the current expectations of Carbon and involve risks and uncertainties ; consequently , actual results may differ materially from those expressed or implied in the statements . Factors that could cause actual results to differ , possibly materially , from those in the forward - looking statements are discussed throughout the Company 's periodic filings with the U . S . Securities and Exchange Commission available at www.sec.gov . Any forward looking statements speak only as at the date of this document . Except as required by applicable law , Carbon undertakes no obligation to update or revise publicly any forward - looking statement , whether as a result of new information , future events or otherwise . Carbon Energy Corporation is an independent oil and gas exploration and production company which owns , operates and develops oil and gas properties in the Appalachian , Illinois and Ventura Basin areas of the United States . Contact : Kevin D . Struzeski Chief Financial Officer 1700 Broadway Suite 1170 Denver , Colorado 80290 720 407 7030 1700 Broadway , Suite 1170 , Denver , Colorado 80290 Telephone 720 407 7030 Facsimile 720 407 7031 2480 Fortune Drive , Suite 300 , Lexington , Kentucky 40509 Telephone 859 299 0771 Facsimile 859 299 0772 270 Quail Court , Suite B , Santa Paula , California 93060 Telephone 805 933 1901
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