Independent companies Southern Mineral, PetroCorp to merge

By the OGJ Online Staff

HOUSTON, May 9 -- Shareholders of Southern Mineral Corp., Houston, have approved a merger with PetroCorp Acquisition Co., a wholly owned subsidiary of PetroCorp Inc., Tulsa.

In the merger, Southern Mineral shareholders will receive $4.71/share in cash or 0.471 PetroCorp share/Southern Mineral share, or a combination of cash and stock.

In the merger, PetroCorp will not be obligated to issue more than 4 million shares of common stock. If more than 4 million shares of PetroCorp stock are elected by Southern Mineral shareholders, those shareholders electing stock are subject to proration.

It is a condition to closing that Southern Mineral shareholders elect to receive at least 3 million shares of Petrocorp stock in the merger. The merger is expected to close May 30.

PetroCorp is an independent operating in North America. Southern Mineral Corp. is an independent operating primarily along the US Gulf Coast, Canada, and Ecuador.