By the OGJ Online Staff
HOUSTON, Jan. 16 -- Capco Energy Inc., Orange, Calif., has agreed to acquire privately held Energy Reserves Group LLC, Houston, for $10.5 million.
Energy Reserves is an oil and gas production and development company producing 830 boe/d, mostly in the Texas Gulf Coast area and Wyoming. Capco expects to be able to develop additional reserves from Energy Reserves' existing wells.
Of the purchase price, $3.25 million is in cash and Capco stock, and the rest is in assumption of bank debt.
Subject to bank approval, the acquisition should close in 30 days.
Capco CEO Ilyas Chaudhary said, "This acquisition will increase our current gross production to over 1,000 boe/d and provide us the necessary cash flow, reserve base, and infrastructure to significantly improve our position in the exploration and production business."
Capco's other interests are in petroleum marketing and propane distribution.
