HOUSTON, July 23 /PRNewswire-FirstCall/ -- Constellation Energy
Partners LLC (NYSE: CEP) today announced it received a favorable ruling in
the arbitration proceeding relating to the net profits interest (NPI) held
by Torch Energy Royalty Trust in the majority of the company's assets in
Alabama's Black Warrior Basin. In issuing its final award, the arbitration
panel concluded that a price sharing arrangement and other pricing terms of
a terminated gas purchase contract continue to burden the NPI and will do
so for the life of the NPI. The price sharing arrangement and related
pricing terms have had the effect of keeping payments to the trust
significantly lower than if the NPI were calculated using the prevailing
market price for production from the applicable wells.
"We are extremely pleased with the ruling," said Stephen Brunner,
president and chief executive officer. "The ruling keeps in place important
pricing terms that impact the economics for a majority of our properties in
the Black Warrior Basin. Most importantly, this decision brings closure to
the dispute that is both contractually and financially important for our
company and provides further support for delivering cash flow stability and
future growth to our investors."
Constellation Energy Partners LLC (http://www.constellationenergypartners.com)
is a limited liability company focused on the acquisition, development and
production of oil and natural gas properties, as well as related midstream
assets.
SOURCE Constellation Energy Partners LLC
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Related links:
http://www.constellationenergypartners.com
CONTACT:
Media: Lawrence McDonnell, +1-410-470-7433;
Investors: Tonya Cultice, +1-410-470-5619, both of Constellation
Energy Partners LLC
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