Fort Lauderdale, FL-based Maverick Oil and Gas Inc. said last week that it has entered into an agreement to acquire 100% of the issued shares of Camden Resources Inc. -- a Dallas-based private oil and gas producer -- for $88 million in cash.
Maverick's internal technical staff and consultants estimate that the oil and gas assets to be acquired from Camden contain reserves of 59 Bcfe of proved reserves and 71 Bcfe in total reserves as of the April 1 effective transaction date. Maverick said the Camden reserves are approximately 96% gas and 98% of the reserve value is operated by Camden.
Current production net to Camden is approximately 6,000 Mcfe/d and is expected to increase substantially after the transaction is closed due to recent drilling success in the principal asset known as Hostetter Field, which is located in McMullen County, TX. The producing fields are located in South and Southeast Texas and have a total of 17 operated producing wells with an additional three wells being completed at this time and one additional well being drilled.
In addition, Camden is a participant in four producing non-operated wells in the same geographical areas. Maverick said considerable development drilling will be conducted during the succeeding 24 months, which should increase net production to approximately 30,000 Mcfe/d by mid-2007.
"The acquisition of these premium quality producing assets is a significant step forward for Maverick and provides a tremendous foundation from which to grow the company in the future," said V. Ray Harlow, CEO of Maverick. "By bringing to bear the full power of our recently announced strategic alliance, the development and exploitation of the Camden assets provides exciting upside potential as well."
Maverick said the acquisition is being financed from working capital and by a combination of debt and equity which is being arranged by its financial advisor Sanders Morris Harris Group Inc.
While the effective date of the sale was April 1, the closing is scheduled to be completed no later than June 10.
Initially formed to explore, acquire leases and drill for natural gas in two regions of Texas, Maverick is a public company engaged in oil and gas exploration, development and production. The company has said it aims to build up an energy portfolio combining "high potential projects" with "relatively low risk" together with higher yield, higher risk projects, using its existing Texan assets as a solid base for expansion.
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