Cubic Energy Reaches $12.1 Mln Settlement with Three Firms; Shares Halted on News

By Staff,

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Trading of Cubic Energy Inc. ( QBC ) shares have been halted after it reached a settlement agreement with Tauren Exploration Inc., EXCO Operating Company LP, and BG US Production Company LLC.

Under the terms of the agreement, EXCO and BG will apply QBC's prepaid drilling credits as provided in the agreement and place the company in consent status on specified wells. They will also pay QBC $12.1 million in cash.

Pursuant to the Fourth Amendment to Credit Agreement between QBC and Wells Fargo Energy Capital Inc., $9.1 million of such total amount shall be paid to Wells Fargo in order to reduce the borrowings under the company's revolving credit facility with Wells Fargo. The Agreement also provides for mutual releases among the parties.

QBC trades in a 52-week range of $0.15 - $0.75; shares have fallen 39% in the last 12 months.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: QBC

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