1st NRG To Purchase Cedar
The terms of the agreement call for 1st NRG to pay a total of $1.5m for Cedar Resources. 1st NRG will pay $1.1m in cash and $400,000 in stock. The agreement is subject to 1st NRG's ability to obtain financing for the transaction.
Cedar Resources operates a CBM field comprised of 6,480 acres in the prolific Powder River Basin in north east Wyoming. Cedar owns an average 1.42 percent working interest in 36 producing wells and 51.66 percent, in an additional well that has been drilled, completed and is awaiting pipeline connection. Cedar Resources will continue to operate and develop the field as a wholly owned subsidiary of 1st NRG, said 1st NRG.
Kevin Norris, CEO of 1st NRG, said: “This Agreement is another step in our corporate development. The acquisition of Cedar Resources and our ability to operate opens up a number of opportunities for further acquisition. We will continue to focus on making acquisitions in known, prolific coal bed methane basins that have current production and cash flow along with a significant component of low risk development potential.”
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