Rio Bravo Rounds Up Pan American Acquisition

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
$7.7MM
Description

Acquired various purchases of a minimum of 63.5% WI in Luling Edwards fields in TX and option to purchase a 15% WI in Bateman Field.

Rio Bravo Oil Inc., Houston, (OTCBB: RIOBD) has acquired privately held, Houston-based Pan American Oil Company LLC for $7.7 million in stock and assumed debt.

Rio Bravo has issued 5.5 million shares, which were valued at $0.85 at press time, and assumed approximately $3 million of Pan American liabilities.

The deal includes various purchases of a minimum of 63.5% working interest in the Luling Edwards fields in Texas and an option to purchase a 15% working interest in Bateman Field. Each interest is subject to a 20% carried interest in favor of a third party.

Pan American is now a subsidiary of the company.

Rio Bravo currently has plans to drill two new wells in the Edwards formation within the next six months. The Pan American transaction is the first in a series of acquisitions of oil and gas working interests planned by the company.