leadf
logo-loader
viewProactive Group

Halcon merges with GeoResources in $1 bln deal

agreement350_4f98178334887.jpg

Halcon Resources Corp. (NYSE:HK) said Wednesday it has agreed to merge with independent oil and gas company GeoResources (NASDAQ:GEOI) in a stock and cash deal worth $1 billion.

Under the merger’s terms, GeoResources stakeholders will get $20 in cash and 1.932 shares of Halcon Resources for each share they own. The transaction reflects a 23 percent premium to GeoResources's Tuesday close of $30.77.

Once the deal closes, GeoResources will own about 18 percent of the combined company’s outstanding stock on a fully diluted basis.

Halcon's Floyd Wilson will remain as chairman, president and chief executive. Mark J. Mize will continue as executive vice president, chief financial officer and treasurer.

The CEO added that the merger will "create a resource powerhouse with exposure to some of the most prolific unconventional liquids plays in the United States."

Wilson also added that the deal will be immediately accretive to discretionary cash flow, production and reserves on a per share basis.

Therefore, the deal will increase Halcon’s estimated proved reserves by over 150 percent to about 52.8 million barrels of oil equivalent, of which 69 percent is liquids.

It will also boost the company's daily production by more than 170 percent to roughly 11,070 barrels of oil equivalent, based on fourth quarter 2011 production rates.

The transaction, which both companies’ boards unanimously approved, is expected to close in the third quarter of 2012.

Houston, Texas-based Halcón Resources is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Mandalay Resources latest drilling shows impressive results from Youle...

Mandalay Resources (TSE: MND-OTCQB: MNDJF) President and CEO Dominic Duffy joined Steve Darling from Proactive with news the company has seen some very strong numbers from the latest drill results on the Youle Deposit at their Costerfield Project. Duffy telling Proactive the numbers returned...

1 day, 3 hours ago

2 min read