ELLORA ENERGY ANNOUNCES SALE OF COMPANY FOR $695M
DENVER, July 20, 2010 /PRNewswire via COMTEX/ --
Ellora Energy today announced the execution of a definitive agreement and plan of merger with an undisclosed buyer.
Under the terms of the agreement, Ellora Energy stockholders will receive base consideration of $695 million in cash, which after adjustment for certain items is expected to result in approximately $13.10-13.35/share on a projected fully diluted share count basis. The transaction is subject to escrow and customary closing conditions, including approval by Ellora's stockholders. Under the terms of the agreement, $35 million will be placed in escrow. Proxy materials are expected to be sent to stockholders within the next 20 days with a stockholder vote anticipated before the end of August.
The Company's year-end 2009 Proved Reserves were 61 Bcfe excluding the properties in Kansas and Colorado that were sold on February 1, 2010, and were 99% gas and 48% Proved Developed. For the quarter ending June 30, 2010, company production was 13.2 MMcfe/d, and the company holds interests in approximately 46,000 net acres in the Haynesville / Bossier plays. In addition, Ellora owns an approximate 100-mile pipeline system in the area. At June 30, 2010, Ellora's estimated net working capital was approximately $125 million and bank debt was $0.
The reserve estimates using SEC guidelines were prepared by the Company's independent reserve engineers, Ryder Scott Company. Mayer Brown LLP has advised the Company as to the legal aspects of the transaction. Tudor, Pickering, Holt & Co. Securities, Inc. has provided a fairness opinion in connection with the merger.
Ellora Energy today announced the execution of a definitive agreement and plan of merger with an undisclosed buyer.
Under the terms of the agreement, Ellora Energy stockholders will receive base consideration of $695 million in cash, which after adjustment for certain items is expected to result in approximately $13.10-13.35/share on a projected fully diluted share count basis. The transaction is subject to escrow and customary closing conditions, including approval by Ellora's stockholders. Under the terms of the agreement, $35 million will be placed in escrow. Proxy materials are expected to be sent to stockholders within the next 20 days with a stockholder vote anticipated before the end of August.
The Company's year-end 2009 Proved Reserves were 61 Bcfe excluding the properties in Kansas and Colorado that were sold on February 1, 2010, and were 99% gas and 48% Proved Developed. For the quarter ending June 30, 2010, company production was 13.2 MMcfe/d, and the company holds interests in approximately 46,000 net acres in the Haynesville / Bossier plays. In addition, Ellora owns an approximate 100-mile pipeline system in the area. At June 30, 2010, Ellora's estimated net working capital was approximately $125 million and bank debt was $0.
The reserve estimates using SEC guidelines were prepared by the Company's independent reserve engineers, Ryder Scott Company. Mayer Brown LLP has advised the Company as to the legal aspects of the transaction. Tudor, Pickering, Holt & Co. Securities, Inc. has provided a fairness opinion in connection with the merger.
Tags: $695M, ANNOUNCES, COMPANY, ELLORA, ENERGY, FOR, OF, SALE
Views: 660
Replies to This Discussion
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Permalink Reply by Skip Peel - Mineral Consultant on
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Ellora Energy has HA units in the Converse Field. S20,28,29,32,33 - 10N - 14W and S2 - 9N - 14W. I hope the mineral owners in those units end up with a top notch operator.
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Permalink Reply by Two Dogs, Pirate on
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I wouldn't rule out Exxon.
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Permalink Reply by jffree1 on
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EOG came to mind because they have an agreement of some sort with Ellora in Shelby County but that is probably small potatoes... relatively, speaking. And you are right about Exxon, of course.
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Permalink Reply by Skip Peel - Mineral Consultant on
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Maybe, TDP. I was hoping that someone might expand on the location of the ~46,000 acres sold as it obviously is far greater than the units I posted. Though there is quite likely significant additional leased acres in LA. outside of the unit sections, I'm thinking that some goodly portion of the 46,000 is in Texas. The location of which may help in the speculation on the purchaser. I'm thinking Encana would make a likely buyer considering recent developments in E. TX. I invite speculative posts as to the purchaser but would like to see some reasons given for the speculation. Your turn now, jffree1.
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Permalink Reply by Two Dogs, Pirate on
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Not many transactions in DeSoto, just dealings with CONOCO/PHILLIPS in 2003, I only briefly looked at that but it did have property around Converse and in East Texas. Then they had dealings with IP minerals through Pure Resources and Blackstone. There is a bunch of transactions in Sabine Parish only skimmed but was in the Northern part. There are 278 entries in Sabine Parish and what is interesting the earliest entry was recorded in 1955 with a skip forward and the next entry being 2003. There is only 9 entries for for DeSoto Parish.
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Permalink Reply by adubu on -
skip--they have a large number acres position HBP in Shelby county. Looking at their assets some one brought them cheap unless they have a lot of liabilities that is not know to general public. At one time in 2008 CHK and HK was looking to close a deal with them but that's when bottom drop out of every thing. EOG does a lot now with HK. I thing XOM has all they wants presently in area thru XTO deal.
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Permalink Reply by Skip Peel - Mineral Consultant on
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I suspect their leasehold goes beyond Shelby but do not have any hard facts just yet. I thought the price was good considering lease terms and Ellora's inability or unwillingness to operate their non-HBP HA leasehold in LA. $695,000,000/46,000 = $15,108 per acre.
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Permalink Reply by Two Dogs, Pirate on
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If Exxon lets it's XTO division work in the model that has in the past, then this deal looks close to something that XTO would do. XTO didn't like to partner up and it looks like from a cursory check Ellora has not partnered up.
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Permalink Reply by adubu on
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Two Dogs--I have nephrew phd geologist with XOM for > 20 years in Houston office said XOM would leave XTO division to run as is always has been working basically independently with XOM oversite finincal management only for present time and untilize there expertise in some of the H tech
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Permalink Reply by DJG on
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Looks like their HBP production acreage is all pretty much in Shelby Co in the following leases:
Operator Name: ELLORA OPERATING, L.P., Operator No: 250595
District 06
Lease, Jan 1993 - May 2010
View Page By Page
Lease name Lease No. District No. Well No. Oil (BBL) Casinghead (MCF) GW Gas (MCF) Condensate (BBL)
ALEXANDER UNIT 244178 06 4H 0 0 206,667 0
ALEXANDER UNIT 244914 06 6H 0 0 106,297 2
ALLEN 14782 06 5,928 47,616 0 0
APPLEQUIST UNIT 239228 06 1H 0 0 329,198 110
BAILEY 098276 06 1 0 0 0 0
BAILEY 172657 06 1H 0 0 104,755 89
BICKHAM UNIT 238756 06 2H 0 0 126,818 18
CASSELL 181905 06 1H 0 0 599,316 134
CORBETT 14783 06 138 0 0 0
CORBETT 197631 06 1H 0 0 0 0
DAVIS, INEZ UNIT 234417 06 1H 0 0 399,004 189
DAVIS, INEZ UNIT 234475 06 3H 0 0 500,288 182
DAVIS, INEZ UNIT 242863 06 2H 0 0 273,986 137
DAVIS, W.I. 210376 06 1H 0 0 250,859 85
DAVIS-HARVEY SOUTH UNIT 245476 06 2H 0 0 441,330 97
DAVIS-HARVEY UNIT 224430 06 1H 0 0 376,873 175
DUNCAN 117315 06 1 0 0 0 0
DUNN 242769 06 1H 0 0 581,491 19
DUNN 245936 06 2H 0 0 371,753 29
ELLORA-DAVIS, R. E. 14289 06 20,765 461,753 0 0
ELLORA-R.E. DAVIS 196760 06 1H 0 0 247,918 141
ELLORA-R.E. DAVIS 201404 06 1D 0 0 0 0
HAMLETT 204218 06 1H 0 0 2,256,168 4,064
HAMLETT 215270 06 2H 0 0 2,481,133 6,311
HILL, ISAIAH UNIT 235633 06 1H 0 0 547,692 3,425
HILL, ISAIAH UNIT 245929 06 3H 0 0 915,402 3,355
HILL, ISAIAH UNIT 246460 06 2H 0 0 533,819 1,876
LOCKE 184392 06 1H 0 0 855,865 385
LOCKE 247340 06 2H 0 0 344,305 134
LUNDY 212011 06 1H 0 0 788,469 307
LUNDY "B" 212999 06 2 H 0 0 1,274,381 609
LYNCH WHIDDON 14449 06 31,610 694,195 0 0
MADELEY 218633 06 1H 0 0 1,067,031 5,850
MADELEY 233678 06 3H 0 0 608,627 2,544
MADELEY 252763 06 2H 0 0 346,108 1,352
MASSEY UNIT 230759 06 2H 0 0 287,072 58
MATHEWS UNIT 230428 06 1H 0 0 269,058 32
MATHEWS UNIT 234418 06 3H 0 0 143,897 59
MCKEE, THOMAS J. USA 106305 06 1 0 0 40 1
MCMAHON FEDERAL 196740 06 1H 0 0 805,921 2,793
MCMAHON FEDERAL (B) 203450 06 2H 0 0 904,846 2,055
MCMAHON FEDERAL (C) 14333 06 5,390 274,938 0 0
MCMAHON FEDERAL (C) 217390 06 3FH 0 0 224,581 1,274
MCMAHON FEDERAL (D) 14337 06 2,322 167,681 0 0
MCMAHON FEDERAL (D) 217395 06 4FH 0 0 161,210 1,700
MOURESS UNIT 235702 06 1H 0 0 402,706 8
MURPHY NORTH UNIT 225295 06 2H 0 0 474,614 47
MURPHY NORTH UNIT 225296 06 1H 0 0 402,371 83
MURPHY SOUTH UNIT 225298 06 1H 0 0 542,173 4
MURPHY SOUTH UNIT 232756 06 2H 0 0 271,318 1
MURPHY UNIT 219701 06 1 0 0 0 0
MYLIN UNIT 244556 06 3H 0 0 321,028 68
O'REAR 181574 06 1H 0 0 125,519 29
O'REAR "A" 181753 06 2H 0 0 186,909 75
OPAL 186956 06 1 0 0 171,416 94
PAYNE HEIRS 233676 06 1H 0 0 205,880 98
PAYNE HEIRS (B) 203488 06 2H 0 0 223,215 164
PEARL 186076 06 1 0 0 118,392 66
PREECE 232238 06 1H 0 0 1,130,228 256
PREECE 235631 06 2H 0 0 869,524 1,442
RUBY 187799 06 1 0 0 23,041 7
RUBY 210725 06 2H 0 0 145,851 70
SABINE ALLEN 175110 06 1H 0 0 1,719,697 978
SABINE ALLEN 245934 06 3H 0 0 161,895 23
SABINE ALLEN 255044 06 2H 0 0 208,793 122
SABINE ALLEN "N" 14928 06 19,297 213,572 0 0
SABINE ALLEN "S" 14842 06 12,427 241,469 0 0
SABINE BRETT 178335 06 1H 0 0 1,634,023 2,221
SABINE BRYAN 182977 06 1H 0 0 1,471,271 2,599
SABINE CAYMAN 183794 06 1H 0 0 361,192 945
SABINE CHARISSE 187868 06 1H 0 0 1,757,182 6,017
SABINE ERIK 179627 06 1H 0 0 1,357,068 666
SABINE GRIFFIN 185965 06 1H 0 0 2,255,895 3,369
SABINE HUGHES 187781 06 1H 0 0 1,605,466 4,999
SABINE HUXLEY 174295 06 1H 0 0 741,267 545
SABINE JAN 181933 06 1H 0 0 1,194,064 821
SABINE KATHRYN 177135 06 1H 0 0 222,377 1,035
SABINE LISA 192916 06 1H 0 0 147,167 571
SABINE MICHAEL 189354 06 1H 0 0 87,369 38
SABINE PATRICIA 179626 06 1H 0 0 397,514 1,278
SABINE SHELBY 174731 06 1H 0 0 1,658,348 3,261
SABINE SIERRA 189353 06 1H 0 0 836,716 2,456
SABINE UNRUH 188585 06 1H 0 0 1,001,255 945
SCRUGGS 200616 06 1H 0 0 1,153,531 344
SCRUGGS 226069 06 1V 0 0 43,587 0
SCRUGGS 237230 06 3H 0 0 318,430 1
SHELBY B 209185 06 2HR 0 0 2,721,780 6,308
SHULL 14472 06 6,991 323,333 0 0
SIERRA, W.I. DAVIS 190098 06 1H 0 0 533,799 1,916
TODD 210377 06 1 H 0 0 1,319,191 6,510
USA-RAYMOND 234286 06 1FH 0 0 0 0
Total 104,868 2,424,557 50,255,240 90,071
Ran another search at TRRC asking for statewide results and the #'s came up identical to the production reported from Shelby.
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Permalink Reply by Skip Peel - Mineral Consultant on
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Nice work, D. Gaar. Does this list square with what you see on Ellora's leasehold map? jffree1's link.
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