Belden & Blake sells Section 29 tax credit properties and renegotiates bank facility.NORTH CANTON, Ohio--(BUSINESS WIRE)--March 7, 1996--Belden & Blake Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BELD BELD Braintree Electric Light Department (Massachusetts) BELD Battlefield Environment Laser Designator ) announced today that it has sold to MCN MCN Motorcycle News (magazine) MCN Maternal Child Nursing MCN American Journal of Maternal/Child Nursing MCN Motorcycle Consumer News MCN Migrant Clinicians Network MCN Molecular and Cellular Neuroscience Investment Corporation of Detroit, Michigan, certain gas production interests that qualify for the non conventional fuel source tax credit. The interests sold to MCN Investment represent working interests purchased by Belden & Blake in 1995 in approximately 500 wells operated by Belden & Blake in Otsego County, Michigan
Otsego County is a county in the U.S. state of Michigan. As of the 2000 census, the population was 23,301. The county seat is Gaylord6. . The working interests were sold to MCN Investment in exchange for approximately $750,000 in cash and a volumetric volumetric /vol·u·met·ric/ (vol?u-met´rik) pertaining to or accompanied by measurement in volumes. vol·u·met·ric adj. Of or relating to measurement by volume. production payment under which 100 percent of the cash flow from the properties will go to Belden & Blake until approximately 11.7 Bcf (billion cubic feet) of gas has been produced and sold. In addition to cash flow from the properties, MCN Investment will make quarterly payments to Belden & Blake based on production from the interests through 2002. Belden & Blake has the option to repurchase the interests in the future. "This transaction allows Belden & Blake to monetize Section 29 tax credits that cannot be fully utilized at the present time," said Ronald E. Huff, Chief Financial Officer of Belden & Blake. "Sale of these interests, and a pending sale of interests in Manistee County, Michigan Manistee County is a county in the U.S. state of Michigan. As of the 2000 census, the population was 24,527. The county seat is Manistee6. Geography According to the U.S. Census Bureau, the county has a total area of 3,317 km² (1,281 mi²). , are expected to generate an average of $500,000 in pre-tax income and $1.4 million in cash flow per year through 2002," Mr. Huff continued. In a separate transaction, Belden & Blake has renegotiated its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility with its bank group. The interest rate of the facility was reduced from LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). + 2 percent to between LIBOR + 1 1/4 percent and LIBOR + 3/4 percent, based on the company's outstanding balances relative to the borrowing base established by the bank group. In addition, the bank group has extended the maturity date of the facility from March 31, 1999, to March 31, 2001. "We are pleased that in light of our enhanced capital base and credit worthiness following the 1995 equity offering, our bank group has substantially lowered the interest rate and extended the maturity of our facility," said Mr. Huff. Belden & Blake Corporation is actively engaged in producing oil and natural gas, acquiring producing oil and gas properties, exploratory and development drilling and gas gathering and marketing in the Appalachian and Michigan Basins. CONTACT: Belden & Blake Corporation Charles P. Faber, 216/499-1660 |
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