Acquired all of the remaining interest in properties in the Permian Basin located near Midland, Texas.
Eagle Energy Trust (TO: EGL-UN) acquired all of the remaining interest in its oil and natural gas properties in the Permian Basin located near Midland, Texas, through its US subsidiary, Eagle Energy Acquisitions LP, for some US $8.5 million in cash.
The transaction is subject to closing adjustments and effective as of Jan. 1. Eagle now owns a 100% working interest in its Midland area properties.
The acquisition was made pursuant to the terms and conditions of the April 2012 purchase and sale agreement for Eagle's initial acquisition of its interest in the Midland area properties. Under the terms of the purchase and sale agreement, Eagle had agreed to purchase the seller's remaining 7.5% undivided interest by April 30.
Eagle also increased the borrowing base under its credit facility, with Bank of Nova Scotia acting as agent, to US $61 million from US $48.5 million effective April 22. In addition, the credit facility has been syndicated to include Canadian Imperial Bank of Commerce as a new lender.
Eagle Energy Trust is an oil and gas energy trust created to provide investors with a publicly traded, oil and natural gas focused, reliable distribution paying investment, with favorable tax treatment relative to taxable Canadian corporations. The company is based in Calgary with an office in Houston.