Infinity Cross Border Acquisition Corp. (INXB), a special purpose acquisition company, and Glori Energy Inc., a Houston-based energy technology company that deploys its proprietary AEROTM System to significantly increase oil production from mature oil fields, announced that Glori has completed the previously announced acquisition of producing oil assets in Wood County, Texas from Petro-Hunt LLC for $40 million. Glori and Infinity, which is co-sponsored by Infinity Group and an affiliate of Hicks Equity Partners LLC, recently announced that they will merge in a $185 million transaction.
Highlights of the acquired assets include:
- Current net production of approximately 500 barrels of oil equivalent (Boe) per day from 28 wells
- Reserves with a production ratio estimated to be 19 years
- Estimated net proved reserves of approximately 2.8MMBoe, of which 56% are proved developed producing (PDP) and 44% are proved undeveloped
- Proved reserves with an average working interest of 98.6%
- Overriding royalty and fee interests which result in high per well net revenue interests
The $40 million purchase price was funded with $24 million in debt facilities, including $2 million in a 6% convertible promissory note issued to Houston-based Petro-Hunt, which may be converted into common stock of the post merger entity at $8.00 per share subsequent to the consummation of the merger and share exchange agreement between Glori and Infinity, and $16 million from Glori's cash on hand.
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