This excerpt taken from the BKH 10-K filed Mar 16, 2006.
(24) SUBSEQUENT EVENTS
Sale of Crude Oil Marketing and Transportation Assets
On January 5, 2006, the Company entered into a definitive agreement to sell the operating assets of its crude oil marketing and transportation business. The sale was completed on March 1, 2006. The Company received approximately $41.0 million of cash proceeds, which will be used for debt reduction or other corporate purposes. As a result of the transaction, the Company expects to record a gain on the sale. For business segment reporting purposes, Black Hills Energy Resources is included in the Energy marketing and transportation segment.
Revenues and net assets of the crude oil marketing and transportation business at December 31 are as follows (in thousands):
In conjunction with the sale of the operating assets of BHER, the $60.0 million uncommitted discretionary credit facility was terminated on March 1, 2006.
On March 6, 2006, the Company entered into a definitive agreement to acquire certain oil and gas assets of Koch Exploration Company, LLC. The assets include approximately 40 Bcfe of proved reserves, which are substantially all natural gas, and associated midstream and gathering assets. The acquisition is subject to further due diligence and is expected to close in the first quarter of 2006.