Finance - Equity
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.
All of the shares were priced at $5.60 each, and net proceeds of about $61 million will support a horizontal drilling development program and general corporate purposes, and will repay revolving credit facility debt.
Nichols was initially attracted to the project by the fact that, at 2.5 million barrels (MMbbl) of oil produced, only 4% of the oil in place had been extracted through primary production and the spacing on the field was liberal by Permian Basin standards.
There is a subsequent offering period begun April 26 that will expire May 23, for LINN unitholders to tender offers and receive the same exchange ratio as under the original offer.
Total net proceeds of about $206.2 million will support pending Big Star acquisition and AMI transaction. If these are not fulfilled, proceeds will support exploration, development and general corporate purposes.
Morgan Stanley is the lead book-running manager, and Johnson Rice & Co. is a joint book-running manager. The offer is scheduled to close April 26.
Net proceeds will be about $53 million; they will fund a pilot horizontal drilling program, repay revolving credit facility debt and support general corporate purposes.
"[This] places Hurricane in a position to drill, test and evaluate two new wells on Lancaster this year," Robert Trice, Hurricane's CEO, said in a statement, referring to the company's North Sea concession.
Sage Midstream will provide transportation, processing, fractionation, storage and marketing services for natural gas, NGL, crude oil, petrochemicals and refined products.
Net proceeds will support general corporate purposes. The offering is scheduled to close April 20.
Rice wants to purchase Marcellus and Utica acreage but will have several legal challenges and may have to continue to bid on the assets held by bankrupt Alpha Natural Resources.
The ASR arrangement enabled repurchases under the $1.25 billion stock repurchase program. In all, 35.1 million shares priced at $21.36 each were retired.