OKLAHOMA CITY, Oct. 13 /PRNewswire-FirstCall/ -- Crusader Energy Group Inc. (Pink Sheets: CKGRQ) today announced that it will be offering for sale certain oil and gas assets in the Whittenburg Basin in the Texas Panhandle (the "Whittenburg Basin Assets"). The sale will be structured as a sale of assets under Section 363 of the United States Bankruptcy Code.
As previously announced, Crusader and its wholly-owned subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code with the United States Bankruptcy Court for the Northern District of Texas, Dallas Division on March 30, 2009. On September 25, 2009, Crusader filed a Motion to Approve Bid Procedures with the Bankruptcy Court regarding the sale of the Whittenburg Basin Assets. A hearing on the motion was held on October 7, 2009.
Also as previously announced, on September 22, 2009, Crusader entered into an agreement with SandRidge Energy, Inc. , pursuant to which SandRidge Energy has agreed to purchase all shares of common stock of Crusader that will be issued upon the effectiveness of the reorganization of Crusader and its wholly-owned subsidiaries under Chapter 11 of the Bankruptcy Code. The Whittenburg Basin Assets will not be acquired by SandRidge Energy and are expressly excluded from the SandRidge Energy transaction.
Jefferies & Company, Inc. is acting as financial adviser to Crusader in its Chapter 11 reorganization and is advising Crusader on this potential sale. Vinson & Elkins LLP is restructuring and reorganization counsel to Crusader. For all sale inquiries regarding the Whittenburg Basin Assets please contact Andy Rogers of Jefferies & Company, Inc. at 281.774.2000.
Information regarding the bid procedures motion regarding the sale of the Whittenburg Basin Assets and Crusader's plan of reorganization and disclosure statement may be obtained at http://www.bmcgroup.com/ and selecting "Find a Case" and then clicking on "Crusader Energy Group Inc."
The announcement of the proposed offer for sale of the Whittenburg Basin Assets shall not constitute an offer to sell or a solicitation of an offer to acquire securities. No securities will be registered under the Securities Act of 1933 or any state or foreign securities laws in connection with such potential sale and securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and state laws.
Cautionary Note to Investors - This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements express a belief, expectation or intention and are generally accompanied by words that convey projected future events or outcomes. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on our company or our business or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise any forward-looking statements.
Oklahoma City-based Crusader Energy Group Inc. is an oil and gas company with assets focused in various producing domestic basins. The Company has a primary focus on the development of unconventional resource plays which includes the application of horizontal drilling and cutting edge completion technology aimed at developing shale and tight sand reservoirs. The Crusader assets are located in various domestic basins, the majority of which are in the Anadarko Basin and Central Uplift, Ft. Worth Basin Barnett Shale, Delaware Basin, Val Verde Basin, and the Bakken Shale of the Williston Basin.
Crusader Energy Group Inc.
CONTACT: Andy Rogers of Jefferies & Company, Inc., +1-281-774-2000, for
Crusader Energy Group Inc.
Web Site: http://www.crusaderenergy.com/
http://www.bmcgroup.com/
