HRG Group Announces Sale Of Certain Assets At Compass Subsidiary For $160 Mln

(RTTNews) - HRG Group Inc. (HRG) announced that its subsidiary, Compass Production Partners , has signed a definitive agreement to sell its Holly, Waskom, and Danville assets to Indigo Minerals for $160 million in cash, subject to customary closing adjustments.

The transaction is expected to close in the current fiscal quarter with an effective date of July 1, 2015. Proceeds are expected to be used to reduce the borrowings outstanding under Compass' credit facility.

The properties sold include approximately 90,000 acres in East Texas and North Louisiana and produce approximately net 34 Mmcfe per day of majority dry gas.

The transaction is subject to satisfactory completion of title and environmental due diligence, as well as the satisfaction of customary closing conditions and receipt of applicable approvals and consents.