Government & Regulatory | Deals - Acquisition, Mergers, Divestitures | Capital Markets | Private Equity Activity
PostRock, Sanchez Reach Tentative SCOOP Settlement
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PostRock Energy Corporation has reported that the trial in Delaware of its suit against Constellation Energy Partners, LLC and Sanchez Energy Partners I, LP, et al. had been postponed indefinitely based on an anticipated settlement.
While nothing has yet been finalized, the proposed settlement contemplates PostRock recovering a target of $21.6 million via the sale of all of its A Units to CEP and Sanchez followed by the orderly disposition of its B Units in a combination of a sale or sales to Sanchez and various block or other market transactions in the course of 2014. Full details of the settlement will be disclosed promptly as soon as it is finalized.
The settlement as currently proposed would eliminate all disputes between the parties and position PostRock to redeploy its capital into oil-focused development projects primarily in central Oklahoma. It will also free CEP and Sanchez to develop and implement a growth strategy at CEP. While there can be no assurance of success, it is hoped that the settlement will be finalized before month end.