By the OGJ Online Staff
HOUSTON, June 5 -- Denbury Resources Inc., Dallas, has agreed to acquire privately held Matrix Oil & Gas Inc., Covington, La., for $163 million in cash and stock, including assumption of liabilities.
The deal will be accounted for as a purchase. Matrix shareholders will receive about 5.7 million Denbury common shares and $30.4 million in cash. Denbury will also redeem Matrix's preferred stock for $32.4 million, redeem outstanding stock options, worth $7.3 million, and retire $25 million of Matrix's outstanding bank debt.
Matrix is an exploration and production company that primarily focuses on the Gulf of Mexico. It owns stakes in 19 offshore blocks and two onshore fields.
Denbury has operations in Mississippi and Louisiana and in the Gulf of Mexico.
Gareth Roberts, CEO of Denbury, said, "The Matrix properties are predominantly older large fields with development potential similar to that of Denbury's existing fields."
A representative of EnCap Investments LLC, Matrix's largest shareholder, will have a seat on Denbury's board.
Matrix estimates its reserve base, as of Apr. 1, was 78.7 bcf of gas equivalent.
Denbury said after the deal is complete, 15% of its reserves and 25% of its production will be offshore.
The adjusted 2001 average daily production for Denbury is now forecast to be 31,900 boe/d, a 49% increase over 2000.
