Daybreak Oil and Gas Inc. has agreed to acquire Reabold California LLC, a subsidiary of Reabold Resources PLC.
Reabold California owns a 50% working interest and operates 10 producing wells in the Sacramento basin in Northern California with proved reserves of 613,000 boe. After the transaction is completed, Daybreak will have 1,085,000 bbl of proved oil equivalent with a value of about $17 million. Reabold California’s production is about 70 boe/d. Combined, the production would be about 100 boe/d.
The acquisition will be an all-stock transaction where Gaelic Resources Ltd., a wholly-owned subsidiary of Reabold Resources, will own up to 45% of Daybreak’s common stock at closing. As part of the transaction, Daybreak will raise about $2.5 million through the sale of its common stock to fund development programs in both the Sacramento basin properties as well as its San Joaquin basin properties.
The transaction will require Daybreak Oil and Gas shareholder approval and is expected to close in first-quarter 2022.
Daybreak Oil and Gas owns a 3-D seismic survey that encompasses 20,000 acres over 32 square miles with about 6,500 acres under lease in the San Joaquin Valley of California. The company operates production from 20 oil wells in the East Slopes project area in Kern County, Cali.