DALLAS, Aug. 27, 2020 /PRNewswire/ -- Montare
Resources I, LLC, a Texas limited
liability company ("Montare") announced today that it entered into
an agreement with Avalon Energy LLC, a Texas limited liability company ("Avalon
Energy") and its affiliates regarding Avalon Energy's ownership of
13,125,000 Common Units ("Units") of Sandridge Permian Trust (NYSE:
PER) (the "Trust"), 100% of the working interests underlying the
overriding royalty interests owned by the Trust and all other
related assets used in connection with operating the underlying
properties related thereto. Avalon Energy has agreed, subject to
the satisfaction of certain conditions, to contribute all of its
Units and its other Trust related assets to Montare and has granted
Montare an irrevocable proxy to vote its Units. Avalon has also
granted exclusivity to Montare with respect to any transaction
involving Avalon and/or the Trust, and has agreed to support
Montare's acquisition of the Trust (either by merger, acquisition
of assets, acquisition of the remaining Units not owned by Avalon
or otherwise) and not to take any action that is detrimental to or
hinders Montare's ability to consummate an acquisition of the
Trust.
Montare and Avalon Energy have also contemporaneously filed a
joint Schedule 13D/A with the U.S. Securities and Exchange
Commission disclosing the agreement.
About Montare Resources I, LLC
Montare is a newly organized entity formed for the sole purpose
of acquiring, owning and operating the oil and gas properties or
interests therein owned by the Trust and Avalon. Montare is owned
indirectly by various oil and gas investors. The President and CEO
of Montare is Dickie D. Hunter.
Forward-Looking Statements
Some statements set forth in this press release contain
forward-looking statements that are subject to change. Statements
including words such as "believe", "expect", or similar words as
well as statements in the future tense are forward-looking
statements. These forward-looking statements are subject to risks
and uncertainties that could cause actual events or actual future
results to differ materially from the expectations set forth in the
forward-looking statements. Some of the factors which could cause
results to differ materially from the expectations expressed in
these forward-looking statements include the following: the
possibility that the transactions may not be completed; the risk
that, if the transactions are completed, Montare may face
difficulty or be unable to enhance the performance of the Trust's
operations; and other factors identified from time to time in
Montare's filings with the Securities and Exchange Commission. All
forward-looking statements in this press release are qualified by
these cautionary statements and are made only as of the date of
this news release.
Contact
Dickie Hunter
Montare Resources
(214) 676-4434
Hunter@montare-resources.com
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SOURCE Montare Resources
