Halcon Resources Corp. announced plans to buy GeoResources Inc. in a cash-and-stock transaction totaling nearly $1 billion.
GeoResources stockholders will receive $20 cash and 1.932 shares of Halcon Resources common stock for each share of GeoResources common stock they hold.
The boards of both companies approved the transaction, which awaits shareholder approval. Floyd C. Wilson, Halcon Resources chairman, president, and chief executive officer, said the acquisition “will create a resource powerhouse with exposure to some of the most prolific unconventional liquids plays in the United States.”
The transaction will increase Halcon’s estimated proved reserves by more than 150% to 52.8 million boe, 69% of which is liquids, and boost its average net production by over 170% to 11,070 boe/d based on fourth quarter 2011 production rates.
Previously, Wilson was chief executive of Petrohawk Energy, which sold to BHP Billiton Ltd. for $12 billion last year.
Halcon Resources, a Tulsa independent, formerly was known as RAM Energy Resources. GeoResources is a Houston independent having oil and gas assets in the Southwest, Gulf Coast, and the Williston basin.