Mariner Energy to purchase Edge Petroleum
Mariner Energy Inc. will purchase Edge Petroleum Corp. and subsidiaries in a deal worth $215 million.
By OGJ editors
HOUSTON, Dec. 15 -- Mariner Energy Inc. will purchase Edge Petroleum Corp. and subsidiaries in a deal worth $215 million. Both are Houston companies.
Closing is set by Dec. 31 and is retroactive to June 30. The transaction has been approved by the bankruptcy court in which Edge Petroleum’s Chapter 11 case is pending, subject to any appeals. Mariner Energy will use revolving credit to fund the acquisition.
Edge reported yearend 2008 proved reserves of 124 bcf of gas equivalent, and Mariner Energy estimates the yearend 2009 figure at 106 bcf of gas equivalent, 70% developed and 72% gas. Third-quarter production averaged 29 MMcfd of gas equivalent. Included are 70,000 net undeveloped acres, mostly in Texas and New Mexico.
More than 80% of the reserves are in South Texas, setting up a new core area for Mariner. About 45% of the reserves are in Flores-Bloomberg field in Starr County.
Mariner structured the deal to preserve certain tax attributes of the Edge subsidiaries and estimates their value at $95 million.
Based on 2008 results, Mariner said, the combination results in more than half of its reserves being onshore.