By the OGJ Online Staff
HOUSTON, Apr. 2�Pure Resources Inc., Midland, Tex., and Hallwood Energy Corp., Denver, Colo., have signed a merger agreement under which a Pure subsidiary will acquire Hallwood for $268 million.
The boards of both companies have approved the deal. Details regarding the transaction will be disclosed in tender offer documents.
Pure will pay $12.50/share for Hallwood common and $10.84/share for preferred. Hallwood common closed at $9.03/share on Mar. 29, before the merger announcement.
Jack Hightower, Pure chairman, president, and CEO, said, �This acquisition will expand our core areas in the Permian and San Juan basins and in South Texas. We expect the transaction to be immediately accretive to earnings and cash flow per share.�
Prue recently bought International Paper Co.�s producing properties and interests covering 6 million acres in the Southern Gulf Coast region for $261 million.
Hallwood's properties are mostly in the Permian basin, the San Juan basin, South Texas, and onshore South Louisiana.
