By OGJ editors
HOUSTON, Mar. 15 -- Tom Brown Inc., Denver, will acquire privately held Matador Petroleum Corp., Dallas, with closing planned by June 30. Consideration is $373 million in cash and assumed debt, for a total of $388 million.
Matador's holdings are mainly in the Permian and East Texas basins. It is the 15th largest producer in Southeast New Mexico and the 4th largest in the Freestone County area of East Texas
Matador's reserves are 269 bcfe, 85% gas. Production averaged 52 MMcfed in the year ended Dec. 31, 2002. Production averaged 61 MMcfed in the first quarter of 2003, the company's 16th straight profitable quarter.
Joseph William Foran, chairman and chief executive officer, established a series of drilling partnerships and affiliates in 1983 to invest in oil and gas properties and combined them to form Matador in 1987. Matador grew almost solely through the drill bit in the past 4 years.
Tom Brown won a bidding process in which Lehman Brothers and A.G. Edwards served as co-advisers.
