Texas limited liability companies Montare Resources I and Avalon Energy have forged an agreement regarding Montare’s acquisition of roughly 13.1 million common units of Sandridge Permian Trust, a company that holds royalty interests in specified oil and natural gas properties in the Permian Basin located in Andrews County, Texas.
Avalon Energy has agreed to contribute all of its units and its other trust-related assets to Montare and has granted Montare an irrevocable proxy to vote its units, according to a statement from Montare.
The deal involves 100 percent of the working interests underlying the overriding royalty interests owned by the trust and all other related assets used in connection with operating the underlying properties related thereto.
Avalon has agreed to support Montare's acquisition of the Trust, either by merger, acquisition of assets, or acquisition of the remaining units not owned by Avalon.
Financial terms were not disclosed.
