Under the agreed terms, NGAS shareholders will receive 0.
Following completion, expected for 13 April, NGAS will be taken private and become a fully-owned unit of Magnum Hunter.
The transaction is still pending a court approval in British Colombia, where NGAS is organised.
The transaction, approved by the boards of the two parties, will improve Magnum Hunter's position in the Appalachian Basin and provide operational synergies, while ensuring financial resources to NGAS to pursue future growth.
The deal, subject to a number of closing conditions, including approval by NGAS shareholders and the supreme court of British Columbia, is anticipated to close by 31 March 2011.
Country: USA, Canada, Sector: Petroleum/Natural Gas/CoalTarget: NGAS Resources IncBuyer: Magnum Hunter Resources CorporationDeal size in USD: 98m Type: Corporate acquisitionFinancing: Debt, All-stockStatus: AgreedComment: The price includes debt
Resources is an independent exploration and production company focused on conventional natural gas basins in the United States that support repeatable drilling opportunities, principally in the southern portion of the Appalachian Basin.
Daugherty, President and CEO of NGAS Resources, commented "We look forward to enhancing our existing relationship with Seminole.
NGAS Resources is an independent exploration and production company focused on unconventional natural gas basins in the United States that provide repeatable drilling opportunities, principally in the southern portion of the Appalachian basin.