By OGJ editors
HOUSTON, Oct. 3 -- A unit of Exxel Energy Corp. and Galaxy Energy Corp. have revised the terms under which Exxel will buy 25% interest in Galaxy's unconventional Piceance basin gas properties in Garfield County, Colo.
Previously, the companies announced a $50 million transaction, but that amount was reduced to $40 million because of a recent decline in natural gas prices and property sale prices, Galaxy said Oct. 3 (OGJ Online, Aug. 1, 2006).
Exxel Energy USA Inc.'s acquisition will raise its stake to 100% interest in the Rifle Creek project, covering 6,000 net acres and including three producing wells.
The parties plan to finalize terms during the next several weeks. Galaxy is based in Denver, and Exxel is based in Vancouver, BC.
