U.S. Energy Systems Announces Agreement to Acquire 62.4 Billion Cubic Feet of Onshore Gas in The United Kingdom Thursday March 9, 10:30 pm ET
NEW YORK, March 9 /PRNewswire-FirstCall/ -- U.S. Energy Systems, Inc. (Nasdaq: USEY - News), announced that its majority owned subsidiary had signed an agreement to acquire from TCW Global Project Fund II, Ltd. and Viking, LLC an entity that has the rights to a 62.4 Billion Cubic Feet ("bcf") of onshore Gas within the United Kingdom. The Company intends to realize the full economic benefits of this transaction by also acquiring a gas off-take agreement and a 42 MW gas fired power plant from a European utility. Completion of these acquisitions requires financing of approximately $70 million, subject to additional capital investment requirements for development and enhancement of the acquired assets. It is anticipated that U.S. Energy will contribute at least $5 million in equity in connection with these transactions (subject to adjustment) and that the balance of the acquisition price will be financed through project funding secured by the acquired assets. ADVERTISEMENT
The assets to be acquired pursuant to this agreement consists of six gas licenses containing 46 bcf (P1) of proved reserves and 16.4 bcf of probable reserves, for a cumulative 62.4 bcf (P2).
Asher Fogel, USEY's chief executive officer stated, "We are excited about this milestone for US Energy Systems and the prospect it holds for our stockholders. This acquisition will put us in an important strategic position in the gas arena and enables us to grow the Company."
About U.S. Energy Systems, Inc.
U.S. Energy Systems, Inc. is an owner of generating facilities and a provider of energy services for large retail customers, including industrial, commercial and institutional end users. USEY owns and operates energy projects in the United States that generate electricity and thermal energy and use renewable fuels.
For further information contact: US Energy Systems, Inc. 545 Madison Avenue New York, NY 10022 (212) 588-8901 Info*usenergysystems.com