StrategicSale Opportunity Ellora Energy is in the final stages of a sale with a $695 million cash consideration and an escrow component, presenting a time-limited window for potential buyers or partners to engage in post-announcement diligence and competitive positioning to win the deal or negotiate add-ons.

Asset Portfolio The company holds substantial Haynesville/Bossier and East Texas/Louisiana shale assets, with about 46,000 net acres and a 100-mile pipeline in the Haynesville area, indicating high strategic value for operators seeking gas-rich shale plays and integrated midstream access.

Production Profile Recent production levels of 13.2 MMcfe/d and a pro forma reserve base of 61 Bcfe (as of year-end 2009) suggest scalable gas production potential, making Ellora an attractive bolt-on to larger E&P portfolios aiming to boost gas volumes and reserve life.

Financial Readiness With net working capital around $125 million and minimal bank debt prior to closing, Ellora presents a financially clean target, which could appeal to buyers seeking a stable, leverage-friendly acquisition or partnership financing.

Strategic Synergies The combination of gas-heavy reserves, a dedicated pipeline footprint, and a regional focus in Haynesville/Bossier enhances cross-sale opportunities for midstream, service providers, and downstream gas marketing partners seeking integrated value chains.