Pinnacle Divests Assets, Chairman of the Board Resigns
17 April 2009 - 7:31AM
PR Newswire (US)
SHERIDAN, Wyo., April 16 /PRNewswire-FirstCall/ -- Pinnacle Gas
Resources, Inc. (NASDAQ:PINN) has sold undeveloped acreage and
certain gas gathering assets, providing net proceeds of
approximately $3.2 million to the company. Pinnacle sold its
high-pressure gas gathering assets in the Cabin Creek area of
Wyoming to Big Horn Gas Gathering, L.L.C., the field operator of
such assets. In addition, Pinnacle sold approximately 800 net
undeveloped acres in its Arvada gas project in Wyoming to an
unrelated third party. The acreage held no production and was not
operated by Pinnacle. The company used a portion of the proceeds to
reduce the amount borrowed under its existing credit facility to $9
million, which is in compliance with the current borrowing base as
of April 14, 2009. "As discussed on our third quarter conference
call, Pinnacle is considering a number of opportunities to raise
cash and improve liquidity through the sale of non-strategic
assets," said Pinnacle President and Chief Executive Officer Peter
G. Schoonmaker. "The sale of the Cabin Creek gathering system to
the operator was in the best economic and strategic interests of
Pinnacle. Moreover, the sale of a small piece of our non-operated,
undeveloped acreage provided immediate cash to Pinnacle with little
opportunity cost. "Our ability to remain in compliance with our
credit facility borrowing base limitations in light of the current
natural gas market provides Pinnacle with an opportunity to prepare
itself for the next natural gas cycle and the opportunities that
higher prices may eventually present the company." In addition,
Pinnacle also announced that Steven A Webster, Chairman of the
Pinnacle Board, recently announced his resignation from the board.
Mr. Webster has served as Chairman of the Board since the company's
inception in 2003. Replacing Mr. Webster as Chairman will be
current board member Thomas G. McGonagle. Mr. McGonagle became a
director in August 2007 and was formerly a Managing Director and
Co-Head of the US Merchant Banking Group at Babcock & Brown LP,
and a Managing Director of the Financial Sponsors Group of
Donaldson, Lufkin & Jenrette. "While Steve Webster's
contributions will be missed, we understand his numerous other
commitments require additional time and efforts and wish him the
best in his future endeavors," added Schoonmaker. "Most
importantly, we thank Steve for his vision in helping to create
Pinnacle and for his service to the company, the Board of Directors
and its stockholders. At the same time, we welcome Tom McGonagle to
the helm and believe he is the right person to guide Pinnacle into
the future during a period of unprecedented volatility in the
natural gas markets. He has the universal support of his fellow
directors and Pinnacle's management team." Pinnacle also filed its
Form 10-K for the period ending December 31, 2008 with the
Securities and Exchange Commission April 15, 2009. It is accessible
at http://www.pinnaclegas.com/ or on the SEC's EDGAR website. About
Pinnacle Pinnacle Gas Resources, Inc. is an independent energy
company engaged in the acquisition, exploration and development of
domestic onshore natural gas reserves. It focuses on the
development of coalbed methane (CBM) properties located in the
Rocky Mountain region. Pinnacle holds CBM acreage in the Powder
River Basin in northeastern Wyoming and southern Montana as well as
in the Green River Basin in southern Wyoming. Pinnacle Gas
Resources was founded in 2003 and is headquartered in Sheridan,
Wyoming. Safe Harbor This press release contains forward-looking
statements regarding future events and our future results that are
subject to the safe harbors created under the Securities Act of
1933 (the "Securities Act") and the Securities Exchange Act of 1934
(the "Exchange Act"). All statements other than statements of
historical facts included in this report regarding our financial
position, business strategy, plans and objectives of management for
future operations, industry conditions, and indebtedness covenant
compliance are forward-looking statements. When used in this
report, forward-looking statements are generally accompanied by
terms or phrases such as "estimate," "project," "predict,"
"believe," "expect," "anticipate," "target," "plan," "intend,"
"seek," "goal," "will," "should," "could," "may" or other words and
similar expressions that convey the uncertainty of future events or
outcomes. Items contemplating or making assumptions about, actual
or potential future sales, market size, collaborations, and trends
or operating results also constitute such forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties, and important factors (many of which are beyond our
control) that could cause actual results to differ materially from
those set forth in the forward-looking statements, including the
following, general economic or industry conditions, nationally
and/or in the areas in which we conduct our business, changes in
the interest rate environment, legislation or regulatory
requirements, conditions of the securities markets, our ability to
raise capital, changes in accounting principles, policies or
guidelines, financial or political instability, acts of war or
terrorism, other economic, competitive, governmental, regulatory
and technical factors affecting our operations, products, services
and prices. DATASOURCE: Pinnacle Gas Resources, Inc. CONTACT:
Ronald Barnes, Chief Financial Officer of Pinnacle Gas Resources,
Inc., +1-307-673-9710 Web Site: http://www.pinnaclegas.com/
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