Kerr-McGee has received antitrust approval for its $1.3 billion acquisition of natural gas producer HS Resources Inc., based in San Francisco. The Oklahoma City independent said it had been granted early termination of the waiting period under the Hart-Scott-Rodino Act, and when completed, Kerr-McGee would join the top five list of leading oil and gas independents, and would up its gas reserves 77%.

Kerr-McGee announced in mid-May that it would acquire gas-rich HS Resources for $66 per share (see Daily GPI, May 15). The deal will consist of a 70% cash payment and 30% of Kerr-McGee Stock. Kerr-McGee also will assume about $450 million of HS Resources’ debt. With its core program in the Rockies, HS Resources holds about 1.3 Tcfe in reserves in the Denver-Julesburg Basin of northeast Colorado. With the acquisition, Kerr-McGee said it expected to increase its daily production of U.S. natural gas by more than 45%.

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