By OGJ editors
HOUSTON, Apr. 24 -- Plains Exploration & Production Co. plans to acquire Stone Energy Corp., Lafayette, La., for $1.46 billion.
The offer invovles a stock transaction worth $977 million and the assumption of $483 million in debt.
The boards of both companies approved the merger agreement and agreed to recommend it to their stockholders for approval.
Closing is expected during the third quarter of 2006. After closing, Stone stockholders will own 30% percent of the combined company.
The combined company would have an estimated proved reserve base of 500 million boe, of which 80% is oil. Combined assets will be in California, the Gulf of Mexico, Rocky Mountains, and Texas with 207,643 net developed acres and 992,822 net undeveloped acres.
Plains plans to issue 34.5 million shares to Stone shareholders. Terms call for Stone shareholders to receive 1.25 shares of Plains stock for each share of Stone stock.
