Galaxy Energy and PetroHunter Energy Corporation Agree to Extend Closing Date on Sale of Galaxy's Powder River Basin Oil and Gas
01 Marzo 2007 - 4:00AM
PR Newswire (US)
DENVER, Feb. 28 /PRNewswire-FirstCall/ -- Galaxy Energy Corporation
(AMEX:GAX) and its wholly owned subsidiary, Dolphin Energy
Corporation, have agreed to an amendment to the Purchase and Sale
Agreement (PSA) with PetroHunter Energy Corporation, which extends
the closing date to March 31, 2007, in connection with
PetroHunter's efforts to obtain financing. Marc A. Bruner, a 14.1%
beneficial shareholder of Galaxy, is the 75% owner of MAB
Resources, LLC which is PetroHunter's largest shareholder. In
addition, Marc A. Bruner is the father of Marc E. Bruner, Galaxy's
President and Chief Executive Officer and a director. Under the
terms of the PSA, which was originally signed on December 29, 2006,
PetroHunter agrees to pay a total consideration of $45 million to
acquire all of Galaxy/Dolphin's oil and gas working interests in
Sheridan, Johnson, Converse and Campbell Counties in Wyoming, and
Big Horn, Custer, Powder River and Rosebud Counties in Montana. The
agreement calls for $20 million to be paid in cash and the
remainder to be paid in PetroHunter common stock. Closing of the
transaction will be subject to PetroHunter obtaining financing on
terms acceptable to PetroHunter and approval of the extension by
Galaxy's senior lenders. As required under the PSA, PetroHunter
made an initial earnest money deposit to Galaxy in the amount of $2
million. On closing of the transaction, PetroHunter will receive a
credit against the purchase price for the deposit and expenses
incurred by it as contract operator of Galaxy/Dolphin's properties.
If the transaction does not close by March 31, 2007, the total
amount of the deposit and operating expenses incurred by
PetroHunter will convert to a subordinated, unsecured promissory
note. Either party may terminate the agreement if the closing has
not occurred by March 31, 2007. Galaxy has filed a Form 8-K
concerning the amendment to the PSA with the Securities and
Exchange Commission. Dolphin owns an average 86% working interest
in 197 oil and gas wells in the Powder River Basin. Twenty-two
wells are currently selling gas at an average rate of 600,000 cubic
feet per day. The remaining wells are in various stages of
dewatering, shut-in waiting on pipeline, or waiting to be
completed. About Galaxy Energy Galaxy Energy Corporation, a
development stage oil and gas exploration and production company,
focuses its operations in the Powder River Basin of Wyoming and the
Piceance Basin of Colorado, in addition to exploration activities
in Germany and Romania. Galaxy conducts its exploration activities
through two wholly owned subsidiaries, Dolphin Energy Corporation
and Pannonian International, Ltd. Forward Looking Statement This
press release consists of forward looking statements regarding the
intent, belief or current expectations of Galaxy and its
management. Prospective investors are cautioned that any such
forward looking statements are not guarantees of future performance
and involve a number of risks and uncertainties, and actual results
could differ materially from those indicated by such forward
looking statements. Galaxy assumes no obligation to update the
information contained in this press release, whether as a result of
new information, future events or otherwise. Please refer to
Galaxy's filings with the United States Securities and Exchange
Commission for discussions of risks and uncertainties found in
Forms 10-K (annual report), 10-Q (quarterly report) and other
filings. Additional information may be found at the Galaxy Energy
Corporation Web site, http://www.galaxyenergy.com/ or by calling
Brad Long, Investor Relations/Galaxy Energy at (800) 574-4294, Bevo
Beaven or Warren Laird of CTA Integrated Communications at (303)
665-4200, or Tina Cameron, Renmark Financial Communications at
(514) 939-3989. DATASOURCE: Galaxy Energy Corporation CONTACT: Brad
Long, Investor Relations of Galaxy Energy Corporation,
+1-800-574-4294; or Bevo Beaven, Sr. Vice President/GM, or Warren
Laird, Senior Account Executive, both of CTA Integrated
Communications, +1-303-665-4200, for Galaxy Energy Corporation; or
Tina Cameron of Renmark Financial Communications, +1-514-939-3989,
for Galaxy Energy Corporation Web site:
http://www.galaxyenergy.com/
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