By OGJ editors
HOUSTON, Sept. 15 -- GeoResources Inc., Williston, ND, plans to acquire Southern Bay Oil & Gas LP, Houston, and Chandler Energy LLC, Denver, for a total $78 million.
Upon completion of the transactions, GeoResources would be based in Houston. Subject to approval by all stakeholders involved, closing is expected by early 2007.
The resulting combined company would have assets in the Williston basin, the Rocky Mountains, and along the Gulf of Mexico coast.
Pro forma reserves for the new GeoResources, based upon reported reserves as of June 30, would be 8.1 million boe, 74% proved developed, with production of 1,500 boed.
GeoResources agreed to issue 8.263 million shares of its common stock for 100% interests of Southern Bay and 1.931 million shares for 100% of the outstanding membership interests of Chandler Energy.
After closing, Executives from Southern Bay and Chandler are slated to assume key management posts at GeoResources. Frank A. Lodzinski, Southern Bay president and chief executive officer, plans to become chief executive officer of the new GeoResources.
