Constellation Energy Partners LLC today reported that it has received the requisite approval under the company’s credit agreements of a plan for managing its business after termination of the company’s Management Services Agreement (“MSA”) with Constellation Energy Partners Management, LLC, a wholly-owned affiliate of Constellation Energy Group, Inc. (“Constellation”).
Constellation notified CEP in June 2009 that it would terminate the MSA effective Dec. 15, 2009. Approval of the plan was required under the terms of the company’s credit agreements.
“As we noted in June, termination of the MSA by Constellation is an event that we have anticipated and are prepared to handle,” said Stephen R. Brunner, the company’s President and Chief Executive Officer. “We are happy to report today that the lenders’ agent has reviewed our plan to manage the company after termination of the MSA and is satisfied with the steps taken to stand up the company.”
The company also announced that it recently executed commodity hedges related to approximately 12.8 Bcfe of 2013 and 2014 natural gas production as follows:
* NYMEX natural gas fixed price swaps on 6,387,500 mmbtu of production in 2013 at an average price of $6.81 per mmbtu; and
* NYMEX natural gas fixed price swaps on 6,387,500 mmbtu of production in 2014 at an average price of $7.03 per mmbtu.
Brunner noted that securing approval of its management plan and hedging future production are part of the company’s continuing efforts to manage risks and uncertainties inherent in CEP’s business.
About the Company
Constellation Energy Partners LLC (www.constellationenergypartners.com) is a limited liability company focused on the acquisition, development and production of oil and natural gas properties, as well as related midstream assets.
source: business wire
Constellation notified CEP in June 2009 that it would terminate the MSA effective Dec. 15, 2009. Approval of the plan was required under the terms of the company’s credit agreements.
“As we noted in June, termination of the MSA by Constellation is an event that we have anticipated and are prepared to handle,” said Stephen R. Brunner, the company’s President and Chief Executive Officer. “We are happy to report today that the lenders’ agent has reviewed our plan to manage the company after termination of the MSA and is satisfied with the steps taken to stand up the company.”
The company also announced that it recently executed commodity hedges related to approximately 12.8 Bcfe of 2013 and 2014 natural gas production as follows:
* NYMEX natural gas fixed price swaps on 6,387,500 mmbtu of production in 2013 at an average price of $6.81 per mmbtu; and
* NYMEX natural gas fixed price swaps on 6,387,500 mmbtu of production in 2014 at an average price of $7.03 per mmbtu.
Brunner noted that securing approval of its management plan and hedging future production are part of the company’s continuing efforts to manage risks and uncertainties inherent in CEP’s business.
About the Company
Constellation Energy Partners LLC (www.constellationenergypartners.com) is a limited liability company focused on the acquisition, development and production of oil and natural gas properties, as well as related midstream assets.
source: business wire
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