Finance - Equity
Since inception in 2005, the Lime Rock Resources funds have made 23 major acquisitions in domestic basins, primarily in Texas, Oklahoma, New Mexico and North Dakota.
Acquisition of mineral interests, surface rights and working interests in Pecos and Reeves counties, Texas, will be supported by portions of proceeds from the share offering and from a senior notes offering.
NASDAQ will file with the Securities and Exchange Commission to remove the shares its from listing and registration.
Ronald E. Smith, CEO, said the company is undervalued due to the current low oil price, but the company’s balance sheet is very strong, and operations should likely improve with its strong backlog.
Underwriters received a month-long option to purchase 562,500 additional units. The offering is scheduled to close on May 20. Barclays is the sole book-running manager.
Randy A. Foutch, chairman and CEO, said retaining the third drilling rig through 2016 has grown production from the fourth quarter of 2015, and puts company at growth trajectory through 2017.
Net proceeds will support general corporate purposes, including funding an expanded drilling program on its Oklahoma Stack Play acreage.
The investment, which has an option to increase to $150 million, is focused on expanding Houston-based activities in the West Texas Permian Basin. Opportunities could include acreage and asset acquisitions and subsequent development.
Credit Suisse was lead book-running manager, and BofA Merrill Lynch, Citigroup, KeyBanc Capital Markets and SunTrust Robinson Humphrey were also book-running managers.
Dynacorp, based in Calgary, Alberta, provides innovative sand management solutions, well testing and production processing equipment to operators and service providers in the oil and gas industry.
The acquisition increases EQT’s core undeveloped Marcellus acreage by 29%, adds 500 locations and allows for extended laterals in one West Virginia county.
The acquisition included certain producing properties and undeveloped acreage in the core of the plays. Pro forma, Indigo Minerals holds about 160,000 net acres in Northwest Louisiana and East Texas.