Ellora Energy Closes on Sale of Hugoton Field Assets for $247 Million

DENVER, Feb. 1 /PRNewswire/ -- Ellora Energy today announced that it has closed on the previously announced sale of substantially all of its southwest Kansas (Hugoton Field) and southeast Colorado properties to an undisclosed buyer.

The contract sale price was $247 million subject to customary closing adjustments. The sale was effective as of January 1, 2010. The transaction also provides for an additional closing on certain properties subject to preferential rights to purchase held by third parties, which had not been waived or granted at closing.  For the quarter ended September 30, 2009 the sold properties produced 30.6 MMcfe/d, comprised of 52% natural gas and 48% oil.    

T. Scott Martin, Chairman and Chief Executive Officer of Ellora Energy, said, "We are now in the position of having no debt and over $100 million of working capital. We are committed to aggressively pursuing our efforts to maximize the value of our remaining assets in the Haynesville and Bossier Shale gas plays in East Texas as we continue to explore our strategic options."

ABOUT ELLORA ENERGY

Ellora Energy Inc. is an independent oil and gas exploration and production company headquartered in Boulder, Colorado. Ellora has oil and gas assets principally located in East Texas/Louisiana in the James Lime, Haynesville and Bossier shale plays.

Forward-Looking Statements

Certain statements included in this press release may be considered forward-looking, which may be characterized by words such as "plan", "expect", project", "intend", believe", and "anticipate". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to Ellora. Actual events may differ materially from current expectations, and Ellora disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Ellora Energy Inc.

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