Clayton Williams Energy Announces Recent Sales of Assets.Producing Properties in South Louisiana and Well Service Equipment MIDLAND, Texas Midland is the county seat of Midland CountyGR6 located on the Southern Plains of the western area of the U.S. State of Texas. As of the 2006 U.S. Census estimate, the city had a total population of 102,073. -- Clayton Williams Clayton Wheat Williams, Jr. (b. 1931), a businessman from Midland, Texas, was the unsuccessful Republican gubernatorial nominee in 1990 against the Democratic State Treasurer Dorothy Ann Willis Richards even though he initially led in opinion polls by twenty points. Energy, Inc. (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 :CWEI CWEI Combat Warfare Electronic Intelligence ) reported that it had recently closed two asset sales. On April 25, 2008, the Company and its affiliates sold all of their interests in 16 producing wells in South Louisiana to EnergyQuest II, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a Quantum Energy Partners IV, LP portfolio company, for approximately $95 million, based on an effective date of March 1, 2008 and subject to customary closing adjustments. The assets that were sold in this transaction represented about half of the Company's proved developed reserves in South Louisiana. The Company retained its interests in the Floyd, Alabama and Fleur prospects, as well as all of its holdings in other undeveloped prospects in South Louisiana. None of the Company's holdings in North Louisiana North Louisiana, also known as Sportsman's Paradise, is a region in the U.S. state of Louisiana. The region has two metropolitan areas: Monroe and Shreveport-Bossier City. were included in this sale. The Company expects to record a gain of approximately $33 million in the second quarter of 2008 in connection with this transaction. Proceeds from the sale were used to repay indebtedness on the Company's 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, reducing the balance outstanding on the facility to approximately $60 million on the closing date. Also, on April 23, 2008 the Company sold a surplus well servicing unit to an undisclosed buyer for $1.8 million. In 2007, the Company recorded a loss on impairment of $1.1 million to reduce the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of this asset to its estimated fair value of $1.5 million. The Company will record a gain of approximately $300,000 on the sale of this asset in the second quarter of 2008. Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas. Except for historical information, statements made in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from expectations, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, exploration risks, uncertainties about estimates of reserves, competition, government regulation, costs and results of drilling new projects, and mechanical and other inherent risks associated with oil and gas production. These risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements. |
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