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Permalink Reply by om28v on November 20, 2009 at 18:07

crimson is already a traded stock, ticker cxpo.

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Permalink Reply by pops Ferg on November 22, 2009 at 2:55

7 wells in 2010 yea! ok Crimson is in partnersip with Devon in San Augustine haynesville.
What other companies are in the group?

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Permalink Reply by DR on November 22, 2009 at 5:34

Don't know. So far they have only talked about drilling more well with Devon. I think Cabot & St. Mary and Range have leases in the area, too.

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Permalink Reply by RBH on December 10, 2009 at 15:24

crimson 52%-Devon 48%

Crimson Exploration Announces First Successful Haynesville Shale Well
HOUSTON--(BUSINESS WIRE)--Nov. 2, 2009-- Crimson Exploration Inc. (OTCBB:CXPO - News) today announced that its Kardell Gas Unit #1H well in San Augustine County, Texas, in which the Company owns a 52% working interest, was successfully completed in the Haynesville Shale formation. The remaining 48% working interest is owned by the unit operator, Devon Energy (NYSE:DVN).

The Kardell #1H was drilled to a total measured depth of 18,350 feet with a total lateral length of approximately 4,500 feet and 12 stages of fracture treatment. The Kardell #1H experienced one of the highest reported 24-hour initial potential rates for a Haynesville Shale well (East Texas and North Louisiana) at 30.7 million cubic feet of natural gas per day on a 37/64 inch choke with 6,824 psi of flowing pressure. The well has been hooked up and is currently flowing to sales. On a net basis to Crimson, and at this rate, production from the Kardell well represents an approximate 31% increase over our average daily production of 38.2 million cubic feet of natural gas equivalents per day during the third quarter.

In addition to the Haynesville Shale formation, the well encountered a thick Mid-Bossier Shale interval with characteristics similar to known Haynesville and Mid-Bossier completions in East Texas and Louisiana. The Mid-Bossier represents significant additional potential to Crimson’s leasehold position in the southern portion of the East Texas Haynesville Play. The Kardell #1H also encountered hydrocarbon shows in the shallower Knowles Lime, Pettet, and James Lime formations, each of which are being evaluated for future drilling activity.

The Kardell #1H was drilled on the eastern edge of Crimson’s “Bruin” prospect where it controls approximately 3,000 acres. The Company is currently in the planning stages of several wells in the “Bruin” area that will further evaluate and exploit these multiple formations beginning in early 2010. Crimson has an additional 9,000 acres outside the “Bruin” area within Sabine and San Augustine counties and expects to commence the initial well on that acreage in early 2010.

Allan D. Keel, Crimson President and CEO, stated - “The Kardell #1H well is another transformational event for Crimson as it continues to build on its multi-pronged strategy of acquisition, exploitation and exploration. We are very pleased with the results from our first East Texas resource-play well and are excited about the multi-pay potential underlying our approximate 12,000 acres. Our early evaluation of the southern area showed similar potential in the Haynesville as that seen in the Haynesville “Core Area” in North Louisiana, yet it had the additional potential in the Mid Bossier. The Haynesville success experienced in the Kardell #1H and recent Haynesville activity from offset operators in this immediate area have proven this early concept. Crimson looks forward to an active year of drilling in this area in 2010, both operated and non-operated. Combining this longer life natural gas asset, with over 100 potential drilling locations in multiple formations in the Bruin prospect alone, with our set of low risk, high return Gulf Coast exploitation opportunities and South Texas exploration prospects, provides us with a balanced, high quality inventory of drilling opportunities that should provide significant growth opportunity for years to come.”

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Permalink Reply by DR on November 26, 2009 at 4:39

Yes, they have traded on the OTC. They are semi-private with some shares trading that are not owned by management and Oaktree Capital. Their stock float is very small. The stock has always been selling for at a discount because of being so illiquid. They can re-IPO the company from the current semi-private status. The illiquidity/marketability discount should be gone after the re-IPO. I hear that larger investors had been interested in the stock but could not buy because of the low float. I have owned their stock for years. In their S-1 they state that they plan to drill 7 Haynesville shale wells in 2010. Very good developments, imo.

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Permalink Reply by DR on December 9, 2009 at 11:49

Tuesday, December 8, 2009, 10:08am CST
Crimson Exploration offers 18 million shares, plans move to NASDAQHouston Business Journal

Crimson Exploration Inc. is putting 18 million shares on the block in an effort to move to the NASDAQ Global Market.

The Houston energy company has applied to list its shares under the symbol CXPO. Crimson already trades on the OTC Bulletin Board.

The company has granted underwriters up to 2.7 million additional shares to cover any over-allotments.

Crimson plans to use net proceeds from the sale to pay down debt. The company has set a price range of between $6 and $8 a share for the offering.

Barclays Capital Inc. and Credit Suisse Securities (USA) LLC will act as joint book-running managers of the offering.

http://houston.bizjournals.com/houston/stories/2009/12/07/daily15.h...

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Permalink Reply by RBH on December 10, 2009 at 15:33

plan to use to pay down debt...
Credit Facility Amendments

On November 6, 2009, we entered into a second and third amendment to our senior secured revolving credit facility, dated May 31, 2007, as amended (“Senior Credit Agreement”). This facility provides cash availability for acquisitions of oil and gas properties and for general corporate cash requirements. The Senior Credit Agreement provides for aggregate borrowings of up to $400.0 million, with an initial borrowing base of $200.0 million that decreased to $140.0 million, effective November 2, 2009, and is subject to semi-annual redeterminations, although our lenders may elect to make one additional redetermination between scheduled redetermination dates (and have expressly reserved the right to do so between January 1, 2010 and May 1, 2010). The next borrowing base redetermination is scheduled for January 1, 2010. These amendments to the Senior Credit Agreement provide, among other things, for (i) a change in the voting percentages required for certain amendments or waivers from 50.1% to 60%, and (ii) a waiver of the current ratio and the leverage ratio for the quarter ended September 30, 2009. The Senior Credit Agreement matures on May 8, 2011. As of September 30, 2009, we had an outstanding loan balance of $141.5 million under our Senior Credit Agreement.

Also, on November 6, 2009, we issued an unsecured promissory note in an aggregate principal amount of $10.0 million to Wells Fargo Bank, National Association, the administrative agent and lender under our Senior Credit Agreement. This promissory note bears interest at a per annum rate equal to LIBOR plus 2% and matures on January 15, 2010; provided that upon an event of default resulting from the failure to make any payment of principal or interest under the promissory note, the interest rate per annum will increase to an amount equal to the lesser of the maximum rate of interest that may be charged under applicable law and LIBOR plus 4% or, if the promissory note has been assigned to any person other than any affiliate of Wells Fargo Bank, LIBOR plus 15%. All of the proceeds of the promissory note were used to repay indebtedness outstanding under the Senior Credit Agreement. As support for the obligations owed under the promissory note, OCM GW Holdings, LLC (“Oaktree Holdings”), our majority stockholder, has deposited $10.0 million in escrow for the benefit of Wells Fargo, which may, at its option, cause the note to be assigned to Oaktree Holdings and draw on the funds held in escrow.

As consideration for Oaktree Holdings’ agreement to deposit $10.0 million in escrow as described above, we issued an unsecured subordinated promissory note on November 6, 2009 in an aggregate principal amount of $2.0 million to Oaktree Holdings. The indebtedness under the promissory note bears interest at a rate equal to 8.0% per annum and matures on the later of (i) November 8, 2012 and (ii) the date six months after payment in full in cash of all Obligations (as such term is defined under each of the Senior Credit Agreement and the Second Lien Credit Agreement (defined below)), and the termination of all commitments to extend credit under the Senior Credit Agreement and the Second Lien Credit Agreement. The promissory note is subordinated in right of payment to the prior payment in full in cash of all obligations under the Senior Credit Agreement and the Second Lien Credit Agreement.

On November 6, 2009, we entered into a third amendment and waiver to our second lien credit agreement dated May 8, 2007, as amended (the “Second Lien Credit Agreement”), with lenders holding a majority of the then outstanding term loans under such agreement, which included an affiliate of Oaktree Holdings. The Second Lien Credit Agreement provides for a term loan in an aggregate principal amount of $150.0 million, with a term of five years with all principal amounts, together with all accrued and unpaid interest, due and payable in full on May 8, 2012. The third amendment to our Second Lien Credit Agreement provided, among other things, for a waiver of the leverage ratio covenant for the quarter ended September 30, 2009.

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