HRG Group (HRG) Unit to Sell Holly, Waskom, and Danville Assets in $160M Cash Deal

HRG Group (NYSE: HRG) announced that its subsidiary, Compass Production Partners ("Compass"), 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.

"We are pleased to announce this transaction which will be accretive in reducing Compass' borrowing base and further enhance Compass' ability to execute its future business plans," said Omar Asali, HRG's President and Chief Executive Officer. "This transaction is reflective of the high quality nature of these assets and prospectivity of the Cotton Valley formation for horizontal exploitation."

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.

The foregoing summary does not purport to be a complete description of the transaction and related agreements. Interested parties should read HRG's other announcements and public filings regarding this transaction and related agreements by reviewing HRG's filings with the Securities and Exchange Commission (www.sec.gov).

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