By OGJ editors
HOUSTON, Oct. 24 -- PetroHunter Energy Corp., Denver, plans to buy Galaxy Energy Corp.'s Powder River basin assets for $45 million in a cash-equity deal. Galaxy is terminating previously announced plans to sell 25% of its Piceance basin assets to Exxel Energy (USA) Inc.
Galaxy, also of Denver, intends to retain ownership of its unconventional Piceance basin gas properties in the Rifle Creek project in Garfield County, Colo. Galaxy and Exxel initially announced a $50 million transaction, but that amount was reduced to $40 million, Galaxy said Oct. 3 (OGJ Online, Aug. 1, 2006). Exxel is based in Vancouver, BC.
PetroHunter signed a nonbinding letter of intent with Galaxy to negotiate a final purchase agreement for Powder River basin oil and gas interests belonging to Galaxy subsidiary Dolphin Energy Corp. in Wyoming and Montana.
Dolphin owns an average 86% working interest in 197 oil and gas wells in the Powder River basin, of which 22 wells are selling gas at an average rate of 850 Mcfd. The other wells are in various stages of dewatering, shut in waiting on pipeline, or awaiting completion.
