Amen Properties Purchases Membership Interests in SFF Production, LLC
December 29 2008 - 4:30PM
Business Wire
Amen Properties (NASDAQ: AMEN) today announced that it has entered
into an agreement to purchase membership interests totaling 45.5%
in SFF Production, LLC. The transaction will close and be effective
December 31, 2008 for a purchase price of approximately $6.8
million to be paid in a combination of cash and convertible
preferred stock. After this purchase, Amen will own 78.8% of the
membership interests of SFF Production. The purchase price was
based on an in-house valuation performed by Amen. The purchase
agreement provides for a purchase price adjustment based on a PV-10
valuation to be done by an independent third party within 90 days
after closing. Amen has hired Ryder Scott Company to perform the
valuation. SFF Production owns 100% of certain oil and gas working
interests purchased from Santa Fe Energy Trust and Devon Energy
Production Company on December 17, 2007. For the nine months ended
September 30, 2008 Amen reported unaudited equity earnings from its
one third interest in SFF Production of approximately $1.2 million
and cash distributions of $800 thousand. Amen Properties is engaged
in the acquisition and management of strong, profitable
energy-related businesses. Priority Power, a wholly-owned
subsidiary acquired in April 2006, is an energy management and
consulting services firm. The Company has other energy-related
holdings through its other subsidiaries, Amen Minerals and Amen
Delaware.