By OGJ editors
HOUSTON, Jan. 17 -- Cadence Resources Corp., Traverse City, Mich., plans to acquire the interests of O.I.L. Energy Corp. and affiliates in Devonian Antrim shale gas production in the Hudson project in northern Michigan.
The $27.5 million acquisition boosts Cadence's ownership to 96% from 49% in many of the fields and gives it control of pipelines and production facilities. Closing is expected by Mar. 1, 2006.
The acquisition is expected to add more than 3 MMcfd to Cadence's existing production and 22 bcf in proved reserves. It also adds 11,000 net acres and 42 potential drilling locations. Cadence Resources is still developing the properties.
Cadence Resources, formerly Royal Resources Inc., also operates in the New Albany shale in Indiana. It closed on a reverse merger with Aurora Energy Ltd. on Oct. 31, 2005.