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NGAS > SEC Filings for NGAS > Form 8-K on 18-Aug-2009All Recent SEC Filings

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Form 8-K for NGAS RESOURCES INC


18-Aug-2009

Other Events


Item 8.01 Other Events
On August 17, 2009, we completed the sale of the remaining 50% undivided interest in 485 miles of Appalachian gas gathering facilities (Gathering System) to Seminole Energy Services, LLC (Seminole) for $22 million. We receive $7.5 million at closing, which we applied to reduce outstanding borrowings under our revolving credit facility. The balance of the purchase price is payable under a promissory note from Seminole for $14.5 million, payable in monthly installments through December 2011, with interest at 8% per annum. The note is secured by a second mortgage lien on the underlying Gathering System assets. Payments under the note will be applied for further debt reduction. The transaction is described in a press release included as an exhibit to this report and incorporated herein by reference. Item 9.01(d) Exhibits

                  Exhibit
                  Number    Description of Exhibit

                  99.1      Press Release dated August 18, 2009


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