The Beard Company Finalizes Sale of McElmo Dome Interest
11 Mai 2009 - 2:30PM
PR Newswire (US)
OKLAHOMA CITY, May 11 /PRNewswire-FirstCall/ -- The Beard Company
(OTC Bulletin Board: BRCO) today announced that it has finalized
the sale of its remaining interest in the McElmo Dome CO2 Unit in
southwestern Colorado. Herb Mee, Jr., President of The Beard
Company, reported that the sale of the Company's remaining
ownership in the 240,000-acre McElmo Dome CO2 Gas Unit in Dolores
and Montezuma Counties, Colorado, previously announced on April 17,
has now been completed. The Company sold its net revenue interest
of approximately 0.3540485% in the Unit for $5,200,000, with
transfer of production effective March 1, 2009. A down payment of
$1,300,000 was received from the purchasers on April 14, 2009 when
the agreement was executed. "After adjustment for certain revenues
received and billings paid by the Company, totaling a net of
$163,374, we received the $3,736,626 balance of the consideration
due on May 7, 2009," noted Mee. "The sale generated a gain of
$4,909,000, which will be included in the Company's financial
results for the quarter ending June 30, 2009." "We have invested
$700,000 of the proceeds in Beard Dilworth, LLC, which we believe
has much greater upside potential than our investment in McElmo
Dome. An additional $1,507,000 has been used to pay down debt, and
we contemplate the retirement of our remaining short-term debt in
the next few months. Additional investments in either Beard
Dilworth, LLC or Geohedral LLC may also be considered. The balance
of the proceeds will be added to working capital pending decisions
by the Board for the use thereof." "The completion of the McElmo
Dome sale represents a key ingredient in the turnaround in progress
at the Company. Funds provided from the sale will enable us to pay
off our bank debt and our short-term debt and allow us to focus our
efforts on Beard Dilworth, our Geohedral investment, and the
various projects under development in our Coal Segment. We consider
Dilworth and Geohedral two of the most exciting projects in our
Company's history. Management is very optimistic regarding Beard's
future prospects, and we look forward to significant improvements
in our operating results in the coming years," Mee concluded. About
The Beard Company The Beard Company creates, acquires, and/or
invests in businesses that management believes have high growth
and/or above-average profit potential and can enhance shareholder
value. The Company will from now on be involved in oil and gas
activities; coal reclamation activities; e-commerce activities
conducted through its starpay(TM) subsidiary; and minerals
exploration and development through its Geohedral investment. The
Company is headquartered in Oklahoma City and its common stock
trades on the OTC Bulletin Board under the symbol "BRCO".
Forward-Looking Statements This document may include statements
that constitute "forward-looking" statements, usually containing
the words "believe", "estimate", "project", "expect", "anticipate",
or similar expressions. Forward-looking statements inherently
involve risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. Factors that
could cause or contribute to such differences include, but are not
limited to, the ability to negotiate and execute contracts in
connection with the Company's coal reclamation activities; the
outcome of a lawsuit against Visa; future trends in commodities
prices; financial, geological or mechanical difficulties affecting
Geohedral's planned geological work programs; uncertainties
surrounding estimates of mineralized material; and other risks
associated with the Company's business. By making these
forward-looking statements, Beard undertakes no obligation to
update these statements for revisions or changes in the future. For
Additional Information, Please Contact: Herb Mee, Jr., President,
at (405) 842-2333 or via email at or RJ Falkner & Company,
Inc., Investor Relations Counsel, at (800) 377-9893 or via email at
DATASOURCE: The Beard Company CONTACT: Herb Mee, Jr., President of
The Beard Company, +1-405-842-2333, ; or RJ Falkner & Company,
Inc., Investor Relations Counsel, 1-800-377-9893, , for The Beard
Company
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