VHGI Gulf Coast Holdings LLC, a subsidiary of VHGI Holdings Inc., Lexington, Ky., (OTCBB: VHGI) and privately held, Houston-based Gulf Coast Exploitation LLC plan to acquire the Houston-based Sterling Exploration & Production Co. LLC and Yazoo Pipeline Co. LP for $4.5 million in a Chapter 7 bankruptcy sale.
The companies to be acquired have assets offshore Texas. Proved reserves are estimated at 1.2 million barrels of oil equivalent, according to a report by Netherland, Sewell & Associates.
The acquisition includes 37 wells, seven operated and two nonoperated platforms and more than 100 miles of pipeline.
Gulf Coast Exploitation will contribute $1.5 million to the purchase price, resulting in a 33% ownership of VHGI. The company will also operate the properties.
Closing is subject to approval by the U.S. Bankruptcy Court for the Southern District of Texas.
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