itan Energy, LLC (OTCQX:TTEN) has entered into a definitive agreement to sell its conventional Appalachia and Marcellus assets to Diversified Gas & Oil, PLC, for $84.2 million.
The transaction includes the sale of approximately 8,400 oil and gas wells across Pennsylvania, Ohio, Tennessee, New York and West Virginia, along with the associated infrastructure (the “Appalachian Assets”). In 2016, the Appalachian Assets generated approximately 30 MMcfepd of net production (92% gas, 8% liquids). Titan will retain its Utica Shale position, Indiana assets and West Virginia CBM assets in the region.
The transaction is subject to customary closing conditions, has an effective date of April 1, 2017 and is expected to close in June 2017. The net proceeds will be used to repay a portion of outstanding borrowings under Titan’s first lien credit facility. The transaction will improve Titan’s first lien credit metrics and is expected to fulfill Titan’s borrowing base step down to $360 million, which is scheduled to occur on August 31, 2017.
Jones Day advised Titan Energy, LLC on the legal aspects of the transaction with a team led by Omar Samji.
Involved fees earner: Omar Samji – Jones Day;
Law Firms: Jones Day;
Clients: Titan Energy, LLC;