Tandem Energy Holdings Inc. Financing Update
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BusinessWire
09:08 a.m. 06/10/2005
MIDLAND, Texas, Jun 10, 2005 (BUSINESS WIRE) -- Tandem Energy Holdings Inc. (TDYH)
On March 1, 2005, the Company issued notes to acquire the stock of Tandem Energy Corporation (TEC). The Company was not able to secure financing on satisfactory terms to retire the notes before their June 1, 2005, maturity date. The holder of the largest of these notes is working with the Company to restructure the consideration that he and others will receive in connection with the Company's acquisition of TEC. To facilitate this restructuring, TEC, on June 8, 2005, borrowed $23 million from Guaranty Bank to retire certain indebtedness relating to TEC's acquisition of the assets of Shamrock Energy Corporation and to place the Company in a position to deal exclusively with the cooperative note holder. It is anticipated that the indebtedness to Guaranty Bank will be assumed by the Company in connection with any restructuring agreement between the Company and the cooperative note holder.
Additionally, and in conjunction with the credit agreement with Guaranty, TEC has entered into certain commodity hedging transactions representing approximately 85% of the Company's estimated production over the next 42 months. The Company has hedged approximately 500,000 barrels of oil over the period utilizing costless collars with a floor of $40 per bbl and a ceiling of $67.10 per bbl. Similarly, the Company has hedged approximately 1.7 Bcf of gas over the same period with a floor of $6.00 per MMbtu and a ceiling of $9.10 per MMbtu.
Forward-Looking Statements:
Statements about the company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act 1934, and as the term is defined in the Private Litigation Reform Act of 1995. The Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release, the Company will appropriately inform the public.
200 N. Loraine, Suite 500 Midland, Texas 79701 432-686-7136 Contact: Mickey Cunningham
Tandem Energy Holdings Inc., Midland Mickey Cunningham, 432-686-7136
Copyright Business Wire 2005
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