?• Escondido Resources II LLC, a privately held company backed by EnCap Investments LP, has acquired producing assets in South Texas from Kaiser-Francis Oil Co., Tulsa, Okla., for an undisclosed price.
The assets include 2,300 gross acres with 17 producing wells in northern Webb County.
Escondido has also acquired 40,000 gross acres in Webb, La Salle and McMullen counties. Both the Kaiser-Francis acreage and new leasehold are prospective in the Olmos and Escondido formations, as well as the Eagle Ford shale. The company intends to begin drilling in the third quarter.
Escondido Resources II was formed in November 2007 by partners William E. Deupree, Mark E. Semmelbeck, J. Kurt von Plonski and J. David Wrather. The company is the successor to Escondido Resources LP, which sold essentially all of its South Texas assets in October 2007 to Swift Energy Co., Houston, (NYSE: SFY) for $249.5 million.
• Double Eagle Petroleum Co., Denver, (Nasdaq: DBLE) plans to acquire Petrosearch Energy Corp., Houston, (OTCBB: PTSG) in a stock-for-stock merger valued at about $9 million.
As of year-end 2008, Petrosearch had 1.66 million BOE in proved reserves. Its primary asset is a 100% working interest in 1,755 acres in Quinduno Field in Roberts County in the Texas Panhandle, Anadarko Basin. The property is undergoing water-flooding.
It also holds minor interests in Oklahoma and North Dakota.
Petrosearch, which began a strategic review process in June 2008, will become a subsidiary of Double Eagle. The transaction is expected to provide Double Eagle with approximately $8.75 million of working capital. Double Eagle will pay 0.0433 share per
Petrosearch share for a total of 1,740,673 shares. Following the merger, Petrosearch shareholders will own 16.3% of Double Eagle.
Double Eagle spokesman John Campbell says the company is looking to diversify its nearly 100% gas weighting in the Rockies to include oil. Closing will be in the second or third quarter.
KeyBanc Capital Markets Inc. was advisor to Double Eagle. Wunderlich Securities Inc. issued an opinion to Petrosearch.?
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