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NGAS Resources Announces Definitive Agreement to be Acquired by Magnum Hunter Resources
Date : 12/27/2010 @ 7:30AM
Source : GlobeNewswire Inc.
Stock : NGAS Resources, Inc. (NGAS)
http://ih.advfn.com/p.php?pid=nmona&article=45793605&symbol=NGAS
NGAS Resources Announces Definitive Agreement to be Acquired by Magnum Hunter Resources
Ngas (NASDAQ:NGAS)
Intraday Stock Chart
Today : Monday 27 December 2010
NGAS Resources, Inc. (Nasdaq:NGAS) a leader in horizontal drilling and completion technology in the southern Appalachian Basin, today announced a definitive agreement with Magnum Hunter Resources Corporation (NYSE Amex:MHR), providing for NGAS Resources to be acquired by Magnum Hunter in an all-stock transaction. NGAS Resources is a British Columbia corporation, and the transaction will be implemented as an arrangement under British Columbia law.
Under the terms of the definitive agreement (the "Arrangement Agreement"), each common share of the Company will be transferred to Magnum Hunter for the right to receive 0.0846 of a share of Magnum Hunter common stock. The exchange ratio for the transaction, which will not be adjusted for subsequent changes in market prices, was established based on an intra-day price of $6.50 for Magnum Hunter stock, representing a value to NGAS shareholders of $0.55 per share, a 41% premium to the NGAS closing price on December 23, 2010. The value of the transaction on an enterprise basis as of the anticipated closing date is estimated to be approximately $98 million, based on NGAS Resources' approximately 78.4 million fully diluted shares and total indebtedness estimated to be outstanding at closing.
A Special Committee of the NGAS Resources board of directors, comprised of five independent directors, and advised by independent financial and legal advisors, recommended the transaction to the full board. The boards of directors of Magnum Hunter and NGAS Resources have approved the transaction, which will require the approval of NGAS shareholders and the Supreme Court of British Columbia. The consummation of the transaction is subject to certain closing conditions, including the full payment by Magnum Hunter of all remaining NGAS amortizing convertible notes due May 1, 2012 and all outstanding borrowings under NGAS Resources' credit agreement, as well as the reduction in change of control severance benefits by NGAS executive officers. The transaction is also conditioned on the restructuring of NGAS Resources gas transportation agreements with Seminole Energy Services, LLC on substantially the terms set forth in a letter of intent between Magnum Hunter, a subsidiary of NGAS and Seminole, including the payment of $10 million in cash or Magnum Hunter restricted stock, the cancellation of approximately $7 million in remaining note installments from Seminole's purchase of the NGAS Appalachian gathering system in August 2009 and the right to acquire a 50% interest in Magnum Hunter's Marcellus gas processing plant.
The transactions contemplated by the Arrangement Agreement are expected to close by March 31, 2011 or as soon as practicable thereafter. Magnum Hunter Resources has secured committed financing from BMO Capital Markets Corp.
On completion of the arrangement transaction, NGAS Resources will become a wholly-owned subsidiary of Magnum Hunter. The transaction will combine NGAS Resources' acreage and expertise in the southern Appalachian Basin with Magnum Hunter's stronger financial resources. In addition to the Company's plays in the Illinois and Arkoma Basins, the transaction will increase Magnum Hunter's position in the Appalachian Basin by approximately 300,000 acres, leverage its nearby infrastructure and provide operational synergies. At year-end 2009, NGAS' proved reserves totaled 78.4 billion cubic feet equivalents.
William S. Daugherty, President and CEO of NGAS Resources, commented, "I am pleased to announce this agreement, as it delivers value to our shareholders. Magnum Hunter's substantial financial resources, coupled with its existing Appalachian operations, will enable the combined operations to accelerate growth for all of its shareholder constituencies."
In connection with the transaction, NGAS was advised by independent financial and legal advisors, KeyBanc Capital Markets, Inc. and Skadden, Arps, Slate, Meagher & Flom LLP, respectively.
About NGAS Resources
NGAS Resources is an independent exploration and production company focused on unconventional natural gas plays in the eastern United States, principally in the southern Appalachian Basin. Core assets include over 345,000 acres with interests in approximately 1,400 wells and an extensive inventory of horizontal drilling locations. NGAS also operates the gas gathering facilities for its core Appalachian properties, providing deliverability directly from the wellhead to the interstate pipeline.
The NGAS Resources, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7617
Additional Information about the Proposed Transaction and Where to Find It
In connection with the proposed transaction, NGAS Resources, Inc. will file a proxy statement and NGAS Resources, Inc. and Magnum Hunter Resources Corporation will file other relevant materials with the SEC. Investors and security holders of NGAS Resources, Inc. are urged to read the proxy statement and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed transaction because they will contain important information about the transaction and the parties to the transaction.
Investors and security holders may obtain a free copy of the proxy statement and other relevant materials when they become available and any other documents filed by NGAS Resources, Inc. with the SEC, at the SEC's web site at www.sec.gov. The proxy statement and such other documents may also be obtained for free from NGAS Resources, Inc. by contacting NGAS Resources, Inc. at: 859-263-3948 or 120 Prosperous Place, Suite 201, Lexington, Kentucky 40509-1844 or visiting the company's website at www.ngas.com.
Participants in Solicitation
NGAS Resources, Inc., Magnum Hunter Resources Corporation and their respective directors, executive officers and other members of management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of NGAS Resources, Inc. shareholders in connection with the proposed transaction. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of certain of Magnum Hunter Resources Corporation's executive officers and directors in the solicitation by reading the proxy statement for Magnum Hunter Resources Corporation's 2010 Annual Meeting of Shareholders, which was filed with the SEC on September 3, 2010, and the proxy statement relating to the transaction and other relevant materials filed with the SEC when they become available. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of NGAS Resources, Inc.'s executive officers and directors in the solicitation by reading the proxy statement for NGAS Resources, Inc.'s 2009 Annual Meeting of Shareholders, which was filed with the SEC on April 29, 2010, and the NGAS Resources, Inc. proxy statement relating to the transaction and other relevant materials to be filed with the SEC when they become available. Certain executives and directors of NGAS Resources, Inc. have interests in the proposed transaction that may differ from the interests of shareholders generally, including benefits conferred under severance, retention and change of control arrangements and continuation of director and officer insurance and indemnification. These interests and any additional benefits in connection with the proposed transaction will be described in the proxy statement when it becomes available.
Safe Harbor Statement
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and may involve a number of risks and uncertainties. Forward-looking statements are based on information available to management at the time, and such forward-looking statements involve judgments. Such forward-looking statements include, but are not limited to, statements regarding the expected timing of the completion of the transaction; the ability to complete the transaction considering the various closing conditions; the benefits of such transaction and its impact on NGAS Resources' business; the oversupply of, or lack of demand for, NGAS Resources' production; various events which could disrupt NGAS Resources' drilling schedule or operations; any projections of economic prospects, earnings, revenues or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements of expectation or belief; any statements regarding general industry conditions and competition; any statements regarding economic conditions, such as interest rate, commodity prices and currency exchange rate fluctuations; any statements regarding timing of development or potential expansion or improvements; any statements regarding quantity or magnitude of oil and gas reserves; and any statements of assumptions underlying any of the foregoing.
In addition, if and when the transaction is consummated, there will be risks and uncertainties related to Magnum Hunter's ability to successfully integrate the operations and employees of Magnum Hunter and NGAS Resources as well as the ability to ensure continued production or market demand for NGAS Resources' oil and natural gas reserves.
Forward-looking statements include expressions such as "believe," "anticipate," "expect," "estimate," "intend," "may," "plan," "predict," "will," and similar terms and expressions. These forward-looking statements are made based on expectations and beliefs concerning future events affecting the company and are subject to various risks, uncertainties and other factors relating to its operations and business environment, all of which are difficult to predict and many of which are beyond management control, and that could cause actual results to differ materially from estimated results expressed in or implied by these forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks to both companies that the acquisition of NGAS Resources will not be consummated; market demand for oil and natural gas as well as changes in pricing and costs; the availability of labor, equipment and transportation; changes in weather, geologic conditions or oil or natural gas deposits; changes in economic conditions or financial markets; changes in prices for the company's production or increases in input or extraction costs; changes in pricing and assumptions and projections concerning reserves in drilling operations; changes in plans with respect to exploration, development projects or capital expenditures; litigation, legislative, health, environmental and other judicial, regulatory, political and competitive developments; changes in customer demand; pricing actions by competitors, customers, suppliers and contractors; availability and costs of credit, surety bonds and letters of credit; technological and operational difficulties or inability to obtain permits encountered in connection with exploration and development activities; labor relations matters; and changing foreign exchange rates, all of which are described more fully in the company's filings with the Securities and Exchange Commission and on EDGAR and SEDAR. Forward-looking statements made in this release, or elsewhere, speak only as of the date on which the statements were made. New risks and uncertainties arise from time to time, and it is impossible for management to predict these events or how they may affect the company or anticipated results. All forward-looking statements are qualified in their entirety by this cautionary statement. In light of these risks and uncertainties, readers should keep in mind that any forward-looking statement made in this release may not occur. The company has no duty or obligation to, and does not intend to, update or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors, except as may be required by law. Readers are cautioned not to place undue reliance on forward-looking statements.
NGAS - G
CONTACT: NGAS Resources, Inc.
Investor Relations
(646) 912-3844
Fax: (859) 263-4228
ngas@ngas.com
http://ih.advfn.com/p.php?pid=nmona&article=45793605&symbol=NGAS
MHR is a gem unlike EXX? which reversed split to be in the $27 range. MHR climbed to its current PPS slow and steady for the past two years
Good job... For you, but not for the long term shareholders of NGAS. The lawsuits have already begun to see if NGAS is acting in the shareholders best interest! I doubled down @ .40 after holding this for over 2 years. My average pps is 1.90..!! Looks like MHR is up pre-market also, which is strange for the buying company...?? MHR has been a better investment that NGAS. So hopefully it will work out for NGAS shareholders!
I already own a ton of MHR .77 a share (NOW trading 6.99 a share). I got into NGAS last week, baby!
Didn't see any announcement today, still think it's coming..???
Chart signals take a back seat to tomorrows announcement
NGAS should have an announcement coming tomorrow about a qualifying transaction to assist in the renegotiation of their bonds for which they are currently in covenant default. Expect a big move one way or the other depending on how this issue is resolved.
According to their most recent balance sheet the company has total shareholders equity of $118.5 million against a market cap of $19.5 million.
With the stock trading at 0.11 times book value a meaningful sale of assets or merger or takeover agreement should bode well for shareholders.
More dilution (see S 3/A filed December 8th with $150 mln in authorized share sales) and/or a reverse split and the trend will continue down.
See below from the 8K filed November 19th for more details.
http://ir.ngas.com/secfiling.cfm?filingID=950123-10-107469
Item 1.01 Entry into a Material Definitive Agreement
On November 19, 2010, we entered into a Limited Waiver and Fifth Amendment (a mendment ) to our Amended and Restated Credit Agreement with KeyBank National Association, as administrative agent for the lenders ( credit agreement ). The credit agreement provides for revolving term loans with a scheduled maturity in September 2011, which resulted in the classification of our revolving debt as a current liability at September 30, 2010. As previously reported, we were not in compliance with the leverage coverage covenant under the credit agreement as of that date, and were in negotiations with our lenders to address the covenant noncompliance. We also reported our prior engagement of a financial advisor to assist us pursue strategic alternatives that would enable us to retire or replace the credit facility ( qualifying transaction ) and could include the sale of assets, merger or other type of strategic transaction.
The amendment to our credit agreement provides for the waiver of our noncompliance with the leverage ratio as of September 30, 2010 on various conditions. The material terms and conditions of the amendment are:
• a reduction in the lenders’ total commitments under the facility to our current outstanding credit facility debt of $35.8 million, which will be due on March 31, 2011;
• the reduction of credit facility debt by monthly installments of $588,000 under a promissory note we received as part of the consideration for our sale of Appalachian gas gathering assets in August 2009;
• the release of any claims against the lenders;
• the payment of certain fees to the lenders and an increase in the interest rate on credit facility debt from 2.25% to 4.25% above the administrative agent’s prime rate;
• an increase in our reporting requirements to the lenders;
• the mortgage of certain additional properties; and
• our entry into a definitive agreement for a qualifying transaction by December 15, 2010.
We are currently in compliance with our financial and other covenants under the amended credit agreement. However, if we are unable to meet any of the conditions under the amendment or obtain further forbearance from the lenders for any noncompliance, our obligations under the credit facility could be accelerated. Related risks associated with any future default under our credit agreement are discussed under the caption “Risk Factors” in our quarterly report on Form10-Q for the quarter ended September 30, 2010 ( Form 10-Q ), which is incorporated in this report by reference.
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
As reported in our Form 10-Q filed on November 9, 2010, we have approximately $21.5 million in outstanding amortizing convertible notes due May 1, 2012 ( 2010 notes ) that contain a cross default provision entitling the holders to call their 2010 notes for redemption at a default premium in the absence of a timely waiver of our covenant default under our credit facility. Although the amendment to our credit agreement described in Item 1.01 of this report waived the cross default under the 2010 notes, it did not cure the cross default. On November 15, 2010, we received a default notice from the holder of $15.3 million principal amount of the 2010 notes. Under the terms of the notes, holders have the right to require us to redeem their notes in cash, within five business days of a default notice at 125% of the entire principal amount, with interest at a default rate of 12%. At any time after providing a default notice, a holder has the right to withdraw the redemption call and instead require the conversion price to be reset from $2.18 per share to the lowest closing bid price of our common stock during the period from the date of the default notice to the redemption withdrawal date.
We are currently in negotiations for a waiver or forbearance from the holder of the 2010 note that was called for redemption. Under the terms of the 2010 notes, any restructuring arrangements with that holder will be offered to the other holders. We do not have sufficient cash to make the payments amounting to approximately $14.5 million on the 2010 note called for redemption and can make no assurances that our negotiations for restructuring our convertible debt will be successful.
UNGSUS natural gas output hit record in 2010: DOE
US natural gas production this year may reach an all-time high as drilling for the heating and power-plant fuel increased. Gas output will average a record 62.09bn cu ft a day this year, Energy Department production data show. The total, which may be revised next month, was up 1% from a November estimate, according to the department’s Short-Term Energy Outlook, released yesterday in Washington. “The increase in the natural-gas-directed drilling rig count since mid-2009, combined with a growing share of horizontal drilling rigs in the lower 48 states, contributed to natural gas production growth in 2010,” the Energy Department said.
and all natural gas is smart place to put ur cash
There is a lot of push but getting through Washington means getting past a lot of hurdles. Ulimately there should be a nice move in prices middle to end next year and the rig count drops. Good time to buy natural gas stocks for cheap and hold.
NGAS up more... hod .556 so far...
i'm holding for this to do what it's going to do, merger, buyout, whatever. end of November the forced selling is ending
so we see the rise starting. will coincide with rising natural
gas prices. this is a stellar long term investment from here.
hod .47 so far... for end of this week... :)
Well, I'm in Florida, so we don't ignite the natural gas too much down here. I was counting on this to jump last winter with the crazy cold winter up north, but it didn't affect NGAS at all. Hoping for a better winter this year! I thought this new pres and his cronies were going to push natural gas...?????
I take that as a mixed negative/positive. You are right about the volume and the filing. Coincidence like everything else in this world.
Tis' the season to get colder, but natural gas has not ignited.
Somebody knew about this filing today from the volume... Looks like they got a loan extension
http://www.dailyfinance.com/company/ngas-resources-inc/ngas/nas/8-K/101206299/html/sec-filings
'Fracking' for energy in Northeast: boon or doom?
GOP election wins give momentum to backers; critics worry about water and EPA is studying impacts
http://www.msnbc.msn.com/id/40135664/ns/us_news-environment/
Eligible noteholders just might make a race to the finish line to convert. Hard situation at the moment for any shareholder. Debt is squeezing out any life there might be. A buyout on the cheap just might save part of a shareholder investment.
I wouuld not like being at the lender's mercy:
The company also announced that as a result of the operations reported today it was not in compliance with the leverage ratio covenant under its credit facility as of September 30th. The company currently has outstanding borrowings of $35.8 million under its credit facility and $21.5 million principal amount of outstanding convertible notes. The convertible notes contain a cross default provision that would entitle the holders to call their notes for redemption as a result of this default. The company is currently engaged in discussions with its lenders to obtain a waiver or forbearance of such defaults but those negotiations may not be successful. If these lenders choose to accelerate their indebtedness, the company does not have sufficient cash to make these payments.
IF they are shorting NGAS and IF they are ratcheting the conversion price down.. why stop at 40c? Not bashing, just seen a similar situation end badly for shareholders.
BOL
Yep, market's down, NGAS is up..!! Looks like those financials didn't scare everyone away!
that will prove to be a good move
as long as you hold for the eventual outcome
in the immediate term, the stock is still under pressure.
here's to holding for the denoument.
When I see a chart like this and 'convertible' it reminds me of BMD/BHMNF.
The note holder didn't convert to shares there either but the chart is similar... I'd be careful.
Day's Range $0.3498 - $0.60, last trade $0.36
I would tend to believe we be seeing more selling in November.
Just a hunch, but no other reason to think otherwise as even natural gas price hype is to the downside.
I took your word for it, and doubled down today @ .40
their fundamentals. see my prior posts and the sec filings.
also, a merger is being explored. i have heard they were offered
a deal a couple years ago and did not take it.
market makers induced panic selling today
buy now and get ready for nice bounce
dunno about a buck bu 50 cents forsure. these are great buyn prices
What makes you think it's worth a buck....?????
if it sells will be for over a dollar.
NGAS Resources Reports Third Quarter 2010 Financial Results
Date : 11/09/2010 @ 4:34PM
Source : GlobeNewswire Inc.
Stock : NGAS Resources, Inc. (NGAS)
Quote : 0.6 0.0 (0.00%) @ 7:22AM
http://ih.advfn.com/p.php?pid=nmona&article=45158312&symbol=NGAS
NGAS Resources Reports Third Quarter 2010 Financial Results
Ngas (NASDAQ:NGAS)
Intraday Stock Chart
Today : Wednesday 10 November 2010
Contract Drilling Revenue Increased 19%
Announces Review of Strategic Alternatives
NGAS Resources (Nasdaq:NGAS) today reported third quarter 2010 total revenue of $11.0 million, compared to $11.2 million for the comparable quarter in 2009. Results for the quarter reflect a 19% increase in contract drilling revenue offset by lower production and higher transportation costs. Oil and gas production revenue was down 10% in the quarter reflecting a 15% production decline partially offset by slightly higher natural gas prices.
For the quarter, the company reported a net loss of $2.5 million, compared to a net loss of $1.1 million in third quarter 2009. Loss per share was $0.06, compared with a $0.04 loss per share in the same period last year. Third quarter 2009 results were positively impacted by a one-time, pre-tax gain of $3.4 million, or $0.07 per share, on the sale of the Appalachian gas gathering assets. Discretionary cash flow per share was $0.01 in third quarter 2010 compared to $0.14 in the same period last year. (A reconciliation of this non-GAAP measure is provided at the end of this release.)
William S. Daugherty, President and CEO commented, "We are continuing to reduce our cost structure to maximize our margins, particularly during this period of low gas prices. As we drill more horizontal wells, efficiencies are driving costs down." Added Mr. Daugherty, "During the quarter, we drilled our longest extended lateral to date in the Devonian shale to 4,800 feet. In addition to our improved economics from these extended laterals, we are accelerating our focus on oil drilling to take advantage of the disparity between oil and gas prices. We are very encouraged with the early results from our first two Weir oil and gas wells and plan to continue development on our Weir prospect."
Operational Highlights for 3Q 2010 versus 3Q 2009
Average daily production was 9,184 Mcfe versus 10,838 Mcfe
Total production was 0.85 Bcfe compared to 1.00 Bcfe
Average natural gas prices $5.74/Mcf versus $5.67
Average price for Appalachian production was $6.08/Mcf
Third Quarter 2010 Expense Review
Selling, general and administrative (SG&A) expenses in third quarter 2010 decreased 5% to $2.5 million. This primarily reflects cost cutting initiatives as well as the timing and extent of marketing activities for sponsored drilling partnerships and the level of partnership sales.
Cash interest expense declined 19% in third quarter 2010 due to lower debt under the company's credit facility and convertible notes. Total interest expense in the quarter was $1.6 million, which included $0.6 million of non-cash interest. The non-cash interest expense reflects the application of the effective interest method for accretion of the debt discount on the company's convertible notes.
The company recognized a fair value gain on derivative financial instruments of $0.4 million under mark-to-market accounting for the embedded conversion features of the convertible notes and related warrants.
Operational Highlights for 9M 2010 versus 9M 2009
Average daily production was 9,201 Mcfe versus 11,125 Mcfe
Total production was 2.51 Bcfe compared to 3.04 Bcfe
Average natural gas prices $5.98/Mcf versus $6.31
Average price for Appalachian production was $6.44/Mcf
Review of Strategic Alternatives
The company announced today that during the third quarter it hired an investment bank to assist the company and that it is evaluating all of its strategic alternatives and that it is actively pursuing possible transactions that may include the sale of the company or of some, or all of, the company's assets.
There can be no assurances that the company's evaluation and pursuit of strategic alternatives will result in any specific transactions. The company does not intend to disclose developments with respect to its evaluation and pursuit of strategic alternatives unless, and until the evaluation of all proposals and alternatives has been completed, and the company has entered into a transaction, or unless otherwise required by law or where a disclosure is deemed appropriate.
While this process is underway, NGAS will continue with its previously announced plan to drill up to 57 horizontal wells in its 2010 drilling partnership.
Covenant Default
The company also announced that as a result of the operations reported today it was not in compliance with the leverage ratio covenant under its credit facility as of September 30th. The company currently has outstanding borrowings of $35.8 million under its credit facility and $21.5 million principal amount of outstanding convertible notes. The convertible notes contain a cross default provision that would entitle the holders to call their notes for redemption as a result of this default. The company is currently engaged in discussions with its lenders to obtain a waiver or forbearance of such defaults but those negotiations may not be successful. If these lenders choose to accelerate their indebtedness, the company does not have sufficient cash to make these payments.
Conference Call Information
Management will host a conference call today at 4:30 p.m. (Eastern) to discuss the results. The conference call can be accessed by dialing 1-800-946-0708 for U.S. callers and 1-719-457-2647 for international callers. The passcode for the call is 7723084. The conference call will be webcast and can be accessed on the company's website at www.ngas.com. A replay will be available approximately two hours after the call's completion and will be available until 11:59 p.m. (Eastern) on November 16, 2010. The replay can be accessed by dialing 1-877-870-5176 for U.S. callers and 1-858-384-5517 for international callers. The passcode is 7723084. The webcast will be archived and available for a time on the company's website at www.ngas.com.
About NGAS Resources
NGAS Resources is an independent exploration and production company focused on unconventional natural gas plays in the eastern United States, principally in the southern Appalachian Basin. Core assets include over 360,000 acres with interests in approximately 1,400 wells and an extensive inventory of horizontal drilling locations. NGAS also operates the gas gathering facilities for its core Appalachian properties, providing deliverability directly from the wellhead to the interstate pipeline. Additional information, including the company's annual report on Form 10-K for 2009 and 2010 proxy statement, can be accessed on its website at www.ngas.com.
The NGAS Resources, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7617
Forward Looking Statement
This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act relating to matters such as anticipated operating and financial performance and prospects. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in those statements due to economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the company, including risks of production variances from expectations, volatility of product prices, the availability of capital to fund drilling and the ability of the company to implement its business strategy. These and other risk factors are described in the company's annual report on Form 10-K for 2009 filed with the SEC and are also available on the company's website. The company will not necessarily update any of the forward-looking statements except as required by law.
NGAS Resources, Inc.
CONSOLIDATED BALANCE SHEETS
ASSETS September 30,
2010 December 31,
http://ih.advfn.com/p.php?pid=nmona&article=45158312&symbol=NGAS
Nov 9 (Reuters) - Gas company NGAS Resources (NGAS.O) said it is evaluating strategic alternatives, including a sale, as weak gas prices continue to hurt and its debt stands at more than double its market value.
NGAS also said it was not in compliance with the leverage-ratio covenant of its credit facility, under which it currently has outstanding borrowings of $35.8 million. It has a long-term debt of $56 million.
Oversupply in shales, or tight rock formations, has meant gas prices NGc1 have shed about a third of their value year to date.
The Lexington, Kentucky-based company, which operates in the unconventional gas plays in the eastern United States, also reported a wider third-quarter loss. [ID:nASA011BN]
The company' shares, valued at about $24 million, have shed two-thirds in the last one year. They closed at 60 cents on Tuesday on Nasdaq. (Reporting by Krishna N. Das in Bangalore)
that was my first thought, and i almost sold,
but upon further reflection i will hold.
waiting on the new financials very soon.
reason why i am holding is this new shelf is mixed,
not all common, we don't know how high the warrants
will be priced, and most importantly it will
finally stop the downpull, because monthly debt payments
will no longer be in shares. To the contrary, new shares
will be held for investment purposes.
this will stop the bleeding. i've seen many of these
shelfs at first be quickly judged as a negative, but
over time establish a new base going forward.
NGAS will have added share strength from this influx
of institutional ownership. ultimately the upper end
of maximum share potential may be adversely impacted,
but we won't know that for at least 6 months.
points considered, this is a positive which increases
the likelihood of a 20-80% gain from this price.
Since the August 10q, only 6 million shares have
been added. 46m shs o/s with 100m a/s
shareholder equity of 117m in assets over liabilities
so even with over 100% more shares fully diluted to 100m
the book value is over $1.00
Looks like papa needs a pot to pi$$ in!
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NGAS Resources Reschedules Its Third Quarter 2010 Webcast
Date : 11/04/2010 @ 4:05PM
Source : GlobeNewswire Inc.
Stock : NGAS Resources, Inc. (NGAS)
Quote : 0.5851 0.025 (4.46%) @ 3:50PM
http://ih.advfn.com/p.php?pid=nmona&article=45087036&symbol=NGAS
NGAS Resources Reschedules Its Third Quarter 2010 Webcast
Ngas (NASDAQ:NGAS)
Intraday Stock Chart
Today : Thursday 4 November 2010
NGAS Resources, Inc. (Nasdaq:NGAS), today announced that it will be releasing its third quarter 2010 financial results after the market close on Tuesday, November 9, 2010. The full text of the release will be available on the Company's website at www.ngas.com.
Management will host a conference call on the same day at 4:30 p.m. (Eastern) to discuss these results. The conference call will be webcast and can be accessed from the Company's website at www.ngas.com.
About NGAS Resources
NGAS Resources is an independent exploration and production company focused on unconventional natural gas plays in the eastern United States, principally in the southern Appalachian Basin. Core assets include over 360,000 acres with interests in approximately 1,400 wells and an extensive inventory of horizontal drilling locations. NGAS also operates the gas gathering facilities for its core Appalachian properties, providing deliverability directly from the wellhead to the interstate pipeline. Additional information, including the Company's annual report on Form 10-K for 2009 and 2010 Proxy, can be accessed on its website at www.ngas.com.
The NGAS Resources, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7617
NGAS-G
CONTACT: NGAS Resources, Inc.
Michael Windisch, CFO
(859) 263-3948
Fax: (859) 263-4228
ngas@ngas.com
NGAS will be releasing its third quarter 2010 financial results after the market close on Thursday, November 4, 2010.
i wrote, will post if i receive a response..
LOL! Even the insiders will let it all sink before they buy in.
Then I wonder if they are even allowed to buy in presently?
I think you provided the best foresight due diligence.
one of the best things that could happen
right around here is insider buying.
i think i will write them suggesting it.
It could be the seller is lazy on Friday. LOL!
maybe we get a good bounce today?
read the sticky post. You could be right, but I would bet more on the sticky post information.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=55657966
at .582 right now, we go up from here, this is a buy.
can't say I'm surprised, as those shares may be being sold
or it could be shorted so they can accumulate more.
Until there is a boost in the natural gas price or
this phase is over, NGAS won't rally. I still expect a rally
by late November. we will see..
3-6 months + I am still bullish on this company share price
especially at this pps.
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Company Information:
NGAS Resources, Inc.
120 Prosperous Place
Suite 201
Lexington, KY 40509-1844
Phone: (859) 263-3948
Fax: 859-263-4228
Toll Free: 800.977.2363
Email: ngas@ngas.com
CIK
0000746834
NGAS Resources, Inc., is an independent exploration and production company focused on unconventional natural gas plays in the eastern United States, principally in the southern portion of the Appalachian Basin and the Illinois Basin. We specialize in generating our own geological prospects in this region, where we have established expertise and a long track record of success. Core assets include 77.9 billion cubic feet equivalents (Bcfe) of proved reserves, 400,000 acres and interests in 1,400 oil and gas wells. We operate the gas gathering facilities for our core Appalachian properties. This enables us to move approximately 90 percent of our gas production directly from the wellhead to interstate pipelines serving major east coast natural gas markets. We believe our extensive experience in this region, relationships with partners, suppliers and mineral interest owners, gives us competitive advantages in developing these resources to achieve annual volumetric growth and strong financial returns on a long-term basis.
Our business is structured to achieve capital appreciation through growth in our natural gas production and reserves. During 2008, we achieved record production of 3.7 Bcfe, up 13% from the prior year. We also increased our estimated proved developed reserves at the end of 2008 by 18.7% to 57 Bcfe, with an additional 21 Bcfe of proved undeveloped reserves. Our undeveloped acreage position of nearly 250,000 acres in the Appalachian Basin provides us with an extensive inventory of low-risk, repeatable drilling locations for future growth.
In 2008, we transitioned our drilling program from vertical to horizontal drilling which is enhancing the value proposition for our operated properties by substantially increasing our recovery volumes and rates at lower finding costs. We focused our horizontal drilling program in our core Leatherwood field, where we successfully completed 20 horizontal wells in 2008. Each well has a single lateral leg up to 3,500 feet through the lower Huron section of the Devonian shale formation, which is present throughout our Appalachian operating areas. Given our success in Leatherwood, we have expanded our horizontal drilling initiative to our other properties. In the first two months of 2009, we successfully completed three wells in our Fonde, Stone Mountain, and Straight Creek fields in southern Appalachia.
In August 2009, we sold a significant portion of our Appalachian gas gathering assets to Seminole Gas Company, our 50-50 joint venture partner in the Rogersville gas stripping facility. The gathering assets that we sold span approximately 485 miles through parts of southeastern Kentucky, eastern Tennessee and western Virginia. We will remain the operator of the pipeline long term. We also retained firm capacity rights of 30,000 Mcf/d ensuring that we are able to move our Appalachian gas production to market. By retaining firm capacity rights, we are also able to maintain our competitive advantages from control of regional gas flow and the ability to acquire undeveloped acreage near our core fields.
We follow a disciplined capital allocation process in selecting opportunities to expand our substantial inventory of drilling prospects that meet our criteria for predictable, long-lived reserves. Our goal is to consolidate our position in the Appalachian Basin, while diversifying our asset base with similar unconventional plays outside the basin. As part of this strategy, we are aggressively developing our New Albany shale play within the south central portion of the Illinois Basin in western Kentucky where we have successfully drilled 37 wells in our new field discovery, Haley’s Mill. We currently hold 46,000 acres there for development. To move the gas to market, our gas gathering system and processing facilities came on line in September 2008.
Management:
http://www.ngas.com/Management/tabid/56/Default.aspx
Press Releases:
http://www.ngas.com/PressReleases/tabid/55/Default.aspx
Filings:
Transfer Agent:
Computershare Trust Company of Canada Inc.
510 Burrard St.
Vancouver V6C 3B9
Canada
Share Structure:
coming
Investor Relations:
Email: ngas@ngas.com
Last update 2.13.2010
The moderator TechKim presently does not own any NGAS shares.
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