On June 6, 2008, CNR Production LLC (CNR), a wholly owned subsidiary of the Company, purchased working interests in certain oil and gas producing properties in south Texas. The acquired properties include a three percent (3%) working interest in over 200 wells across nine separate fields in south Texas, an area where CNR owned working interests from 2003 through 2007.
Cash paid at closing of $7,710,555 was funded by a combination of available cash and $5,200,000 in debt from a new Senior Credit Facility provided by Union Bank of California.