Petro Resources Corporation ("the Company") announced today that it has sold the Company's 5.33% limited partner interest in Hall-Houston Exploration II, L. P. The interest was purchased by a privately owned partnership for a cash consideration of $8.00 million. The Company will realize a net gain on the sale of the asset of approximately $1.10 million for the quarter ending September 30, 2008.
The Company used approximately $7.97 million of the proceeds from this transaction to redeem 2,563,712 shares of the Company's outstanding Series A Preferred Stock at a price of $3.00 per share plus accrued dividends. The shares were held by investment funds managed by Touradji Capital Management. Pursuant to the terms of the Series A Preferred Stock, the Company was required to redeem all Series A Preferred Stock no later than October 2, 2008. After giving effect to the redemption, there is no Series A Preferred Stock outstanding.
The Company's Chief Executive Officer, Wayne Hall, commented, "This key transaction allows us to clean up the balance sheet with the redemption of the preferred stock and to preserve that corresponding amount of availability under our new senior credit facility for use in our capital program."
About Petro Resources
Petro Resources Corporation is an independent exploration and production company engaged in acquisitions of exploratory leases, acquisitions of producing properties, secondary enhanced oil recovery projects, exploratory drilling, and production of oil and natural gas in the United States.
The Company is currently producing oil and natural gas from a geographically and geologically diversified reserve base. The Company's net total proved reserves of more than 3.0 million barrels of oil equivalent is distributed among 18 fields in the states of North Dakota, Texas, and Louisiana.
Contact:
Brad Holmes
Investor Relations
(713) 654-4009
or
Don Kirkendall
President
(832) 369-6986
Source: Petro Resources Corporation
The Company used approximately $7.97 million of the proceeds from this transaction to redeem 2,563,712 shares of the Company's outstanding Series A Preferred Stock at a price of $3.00 per share plus accrued dividends. The shares were held by investment funds managed by Touradji Capital Management. Pursuant to the terms of the Series A Preferred Stock, the Company was required to redeem all Series A Preferred Stock no later than October 2, 2008. After giving effect to the redemption, there is no Series A Preferred Stock outstanding.
The Company's Chief Executive Officer, Wayne Hall, commented, "This key transaction allows us to clean up the balance sheet with the redemption of the preferred stock and to preserve that corresponding amount of availability under our new senior credit facility for use in our capital program."
About Petro Resources
Petro Resources Corporation is an independent exploration and production company engaged in acquisitions of exploratory leases, acquisitions of producing properties, secondary enhanced oil recovery projects, exploratory drilling, and production of oil and natural gas in the United States.
The Company is currently producing oil and natural gas from a geographically and geologically diversified reserve base. The Company's net total proved reserves of more than 3.0 million barrels of oil equivalent is distributed among 18 fields in the states of North Dakota, Texas, and Louisiana.
Contact:
Brad Holmes
Investor Relations
(713) 654-4009
or
Don Kirkendall
President
(832) 369-6986
Source: Petro Resources Corporation
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