Galaxy Energy to Exit Gas Project
Wednesday, August 2nd 2006
Galaxy Energy Corp., a developer of coalbed methane and other natural gas properties, on Tuesday said it plans to sell its 25 percent stake in a Colorado natural gas project to Exxel Energy Corp., a Canadian oil and gas developer, for $50 million.
Denver-based Galaxy said that Exxel Energy’s subsidiary, Exxel Energy USA Inc., would acquire the stake. The project, known as Rifle Creek in Garfield County, comprises three wells and about 6,000 acres.
The companies will negotiate an agreement over the next several weeks, they said.
Shares of Galaxy were up 3 cents, or 6 percent, to 50 cents, in morning trading on the American Stock Exchange.