By OGJ editors
HOUSTON, Aug. 26 -- Patina Oil & Gas Corp., Denver, agreed to acquire Cordillera Energy Partners LLC, a private Denver-based oil and gas company, in a $244 million deal.
The purchase will increase Patina's proved reserves by 235 Bcfe, or roughly 20%. Cordillera will receive $240.5 million in cash, plus 5-year warrants to purchase 500,000 shares of Patina common stock for $45 each.
The reserves being acquired are 93% natural gas. Net production from the properties is more than 27 MMcfd gas and 600 b/d oil. More than 85% of the reserve value is operated.
The transaction includes interests in 600 producing wells in the Anadarko basin of western Oklahoma and the Texas Panhandle, the San Juan basin within New Mexico's Rio Arriba and San Juan counties, and the Permian basin.
Patina Chairman Thomas J. Edelman said, "The Cordillera acquisition represents the largest purchase in our history and has substantial strategic value," and establishes the San Juan basin as a third core area.
The purchase, subject to normal closing conditions, is scheduled to close Oct. 1.