Buying oil and gas
26 Aug 2003
Patina Oil and Gas Corporation has agreed to acquire all of the assets of Cordillera Energy Partners, a privately held oil and gas company based in Denver, CO.
The purchase will increase Patina's proved reserves by 235 Bcfe (billion cubic feet equivalent) or roughly 20%.
Cordillera will receive $240.5 million of cash plus five year warrants to purchase 500,000 shares of Patina common stock at a price of $45.00 a share.
The properties being purchased include interests in 600 currently producing wells in the Anadarko Basin of western Oklahoma and the Texas Panhandle, the San Juan Basin within Rio Arriba and San Juan Counties of New Mexico and, to a lesser extent, the Permian Basin.
Net daily production from the properties currently exceeds 30 MMcfe (million cubic feet equivalent) comprised of 27 MMcf of gas and 600 barrels of oil.
The purchase, subject to normal closing conditions, is scheduled to close on October 1st and is expected to be funded with borrowings under Patina's bank facility.
