DALLAS, Aug. 30, 2013 (GLOBE NEWSWIRE) -- Cubic Energy, Inc. (OTCQB:CBNR) ("Cubic" or the "Company" or the "Buyer") announces today that the Company obtains non-binding commitments for up to $107,000,000 of financing. Such financing is subject to satisfactory diligence and documentation at the potential investors' discretion, and the closing of an additional acquisition. This financing is intended for the acquisition of the Gastar Exploration Texas, LP ("Gastar") East Texas properties, drilling and working capital, potential additional acquisitions, and payment toward existing debt.
In consideration of the above, Gastar has agreed to extend the closing date of the purchase of the Gastar East Texas properties until September 20, 2013. In consideration for such extension, Cubic has agreed to increase the purchase price to be paid for the Gastar East Texas assets by One Million Dollars ($1,000,000). This additional payment results in a final purchase price of $47,000,000 for the Gastar East Texas properties.
Once closing occurs, the aggregate amounts previously deposited which equal Four Million Six Hundred Thousand Dollars ($4,600,000.00) will be deducted from the purchase price to be paid at closing resulting in a net amount due of Forty Two Million Four Hundred Thousand Dollars ($42,400,000).
Cubic Energy, Inc. is an independent company engaged in the development and production of, and exploration for, crude oil and natural gas. The Company's oil and gas assets and activity are currently concentrated primarily in the Cotton Valley and Haynesville Shale Play located in Northwest Louisiana. Additional information can be found on Cubic's website at: www.cubicenergyinc.com.
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This press release includes statements, which may constitute "forward-looking" statements, usually containing the words "believe", "intend", "estimate", "project", "expect", or similar expressions. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, future trends in oil and natural gas prices, the ability to close the purchase of desirable oil and/or natural gas assets, the availability of capital for development of mineral projects and other projects, the availability of capital to satisfy debt obligations, dependency on pipelines in which to sell the Company's natural gas it produces, reliance on third party operators for wells in which the Company maintains a working interest, reliance on third party contractors to aid in developing the production infrastructure and in the performance of well completion work, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revision or changes after the date of this release. There can be no assurance that any future activities and/or transactions mentioned in this press release will occur as planned. Cubic cannot guarantee the timing of the drilling or any level of production from its wells.