Quest Resource Announces Termination of Merger Agreement With Pinnacle Gas Resources and Acreage Addition in Pennsylvania
19 Mai 2008 - 12:30PM
Marketwired
OKLAHOMA CITY, OK ("Quest") announced today that its Board of
Directors has terminated the merger agreement between Quest and
Pinnacle Gas Resources, Inc. (NASDAQ: PINN). Pursuant to the terms
of the merger agreement, either party had the right to terminate
the merger agreement if the proposed merger was not completed by
May 16, 2008. No termination fee is payable by Quest as a result of
its termination of the merger agreement.
Quest also announced that its wholly owned New Ventures group
has signed a letter of intent with a private company to enter into
a farm-out agreement that would give it the right to develop
approximately 30,000 net acres in Pennsylvania for a one year
period. All of the acreage is within the recognized fairway of the
Marcellus Shale play.
Quest plans to fund the $4 million initial cost of the agreement
with existing cash balances and is formulating plans to commence
drilling on the acreage in the second half of the year assuming the
acquisition is consummated. At the end of the farm-out period, the
Company has the option to acquire all of the acreage for an
additional payment of $6.5 million. If Quest does not exercise the
purchase option, it would be entitled to keep any acreage that was
developed during the farm-out period.
Quest intends to fund the initial drilling with cash received
from its two master limited partnerships and/or its existing credit
facility. With the agreement, Quest will own the right to develop
approximately 52,000 net undeveloped acres that management believes
to be prospective for the Marcellus Shale. The New Ventures group
has drilled, completed, and is testing the first well on the
Company's existing 22,000 net acres in the play. Based on early
test results, Quest is working to connect the well to a
pipeline.
Management Comment
Jerry Cash, Chairman, President, and Chief Executive Officer of
Quest Resource, said, "We are disappointed that some of the
conditions to closing our proposed merger with Pinnacle were not
satisfied as of May 16, 2008. After much consideration, our Board
of Directors determined it was in the Company's best interest to
pursue other opportunities at this time. We are excited about the
potential our experienced technical team has identified on our
growing acreage position in the Marcellus Shale play, and we look
forward to developing that acreage."
About Quest Resource Corporation
Quest Resource Corporation is a fully integrated E&P company
that owns 100% of the general partner and a 57% limited partner
interest in Quest Energy Partners, L.P. and 85% of the general
partner and a 36% limited partner interest in Quest Midstream
Partners, L.P. Quest Resource operates and controls Quest Energy
Partners and Quest Midstream Partners through its ownership of
their general partners. For more information, visit the Quest
Resource website at www.qrcp.net.
Quest Energy Partners, L.P. was formed by Quest Resource Corp.
to acquire, exploit and develop natural gas and oil properties and
to acquire, own, and operate related assets. The partnership owns
more than 2,300 wells and is the largest producer of natural gas in
the Cherokee Basin, which is located in southeast Kansas and
northeast Oklahoma and holds a drilling inventory of nearly 2,100
locations. For more information, visit the Quest Energy Partners
website at www.qelp.net.
Quest Midstream Partners, L.P. was formed by Quest Resource
Corp. to acquire and develop transmission and gathering assets in
the midstream natural gas and oil industry. The partnership owns
approximately 2,000 miles of natural gas gathering pipelines and
over 1,100 miles of interstate natural gas transmission pipelines
in Oklahoma, Kansas, and Missouri. For more information, visit the
Quest Midstream Partners website at www.qmlp.net.
Forward-Looking Statements
Opinions, forecasts, projections or statements other than
statements of historical fact, are forward-looking statements that
involve risks and uncertainties. Forward-looking statements in this
announcement are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Although Quest
believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. In particular, the forward
looking statements made in this release are based upon a number of
financial and operating assumptions that are subject to a number of
risks, including the uncertainty involved in exploring for and
developing new natural gas reserves, the sale prices of natural gas
and oil, labor and raw material costs, the availability of
sufficient capital resources to carry out the anticipated level of
new well development and construction of related pipelines,
environmental issues, weather conditions, competition and general
market conditions. Actual results may differ materially due to a
variety of factors, some of which may not be foreseen by Quest.
These risks, and other risks are detailed in Quest's filings with
the Securities and Exchange Commission, including risk factors
listed in Quest's latest annual report on Form 10-K and other
filings with the Securities and Exchange Commission. You can find
Quest's filings with the Securities and Exchange Commission at
www.qrcp.net or at www.sec.gov. By making these forward-looking
statements, Quest undertakes no obligation to update these
statements for revisions or changes after the date of this
release.
Company Contact: Jack Collins Investor Relations Phone: (405)
702-7460 Website: www.qrcp.net
Quest Resource (MM) (NASDAQ:QRCP)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Quest Resource (MM) (NASDAQ:QRCP)
Historical Stock Chart
Von Jul 2023 bis Jul 2024