AgStar Announces the Sale of the Hankinson, North Dakota Ethanol Plant
Former VeraSun plant purchased by a subsidiary of Murphy Oil Corporation
MANKATO, Minn. (October 1, 2009) – AgStar Financial Services’ lending group announces a subsidiary of Murphy Oil Corporation has purchased the Hankinson, North Dakota ethanol plant. Murphy Oil Corporation, headquartered in El Dorado, Arkansas, is an international oil and gas company that conducts business through various operating subsidiaries. A binding purchase agreement was recently signed and the sale closed today. The Company plans to have the plant fully operational as soon as possible. This 100-million gallon (nameplate capacity) plant was acquired by the AgStar lending group through VeraSun Energy’s bankruptcy in April of 2009.
Paul DeBriyn, President and CEO of AgStar Financial Services said, “Murphy Oil Corporation has a long tradition of being a part of the communities they serve and we’re excited to know this plant will soon be running again.” AgStar continues to lead a group of lenders in financing the Company. “This sale will provide jobs, create opportunities for area farmers to sell corn and produce ethanol - which is good news for the industry.”
This sale represents the AgStar lending groups final VeraSun Energy plant sale. The lending group recently closed on the purchase of the Dyersville, Iowa and Janesville, Minn. ethanol plants. “I’m very proud of the efforts our team put into getting these former VeraSun facilities in the hands of companies with farmer-owner interests. We believe these sales represent a positive outcome for AgStar’s clients, stockholders and lender group,” stated DeBriyn. “Based on nameplate capacity, plant sale prices have been well within the range of what we expected to receive for these valuable assets.”
About AgStar:
AgStar Financial Services, ACA, headquartered in Mankato, Minn., employs more than 610 full-time team members. The company is part of the national Farm Credit System and has a public mission to serve 69 counties in Minnesota and northwest Wisconsin. The company has expertise in the corn, soybean, swine, dairy and bio-energy industries. AgStar has developed successful programs in loans, leases, crop insurance, tax services, accounting, consulting and rural home mortgages. As a value-added financial services cooperative, AgStar allocates patronage dividends to its 13,000 stockholders. Visit www.AgStar.com for more information.
About Murphy Oil Corporation (“Murphy” or “the Company”):
Murphy Oil Corporation is an international oil and gas company that conducts business through various operating subsidiaries. The Company produces oil and/or natural gas in the United States, Canada, the United Kingdom, Malaysia and the Republic of Congo and conducts exploration activities worldwide. Murphy also has an interest in a Canadian synthetic oil operation, owns two petroleum refineries in the United States and one refinery in the United Kingdom. The Company operates a growing retail marketing gasoline station chain on the parking lots of Walmart Supercenters and at stand-alone locations in the United States and also markets petroleum products under various brand names and to unbranded wholesale customers in the United States and the United Kingdom. Murphy is headquartered in El Dorado, Arkansas. The Company’s common stock is traded on the New York Stock Exchange under the ticker symbol “MUR”.
AgStar Contact:
Heather Leiferman
507-529-2087
Heather.leiferman@agstar.com
Murphy Oil Contact:
Dory Stiles
870-864-6496
Dory_Stiles@murphyoilcorp.com
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