Houston-based Silver Run Acquisition Corp. II, an energy-focused special purpose entity sponsored by an affiliate of Riverstone Holdings LLC, has closed its initial public offering (IPO) for $1.035 billion gross. The record-breaking blank check offering, headed by former Anadarko Petroleum Corp. CEO Jim Hackett, plans to enter into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination "with one or more businesses." The IPO was priced at $10/share and sold 103.5 million units, including 13.5 million in the over-allotment option. The initial Silver Run blank check offering, now Centennial Resource Development Inc., is targeting the Permian Basin.
The West Virginia Senate has passed a bill that would allow the state's gas producers to gather mineral owners into a large tract of land to better block-up acreage positions for horizontal drilling. The Senate approved SB 576 on a 19-14 vote. The legislation now heads to the House of Delegates for consideration. It would require a producer to obtain a simple majority agreement from landowners within a proposed tract rather than the current 100%. Producers couldn't force a landowner into a tract if they own a fourth of the minerals. It would also allow gas from nearby properties where mineral rights owners have already agreed to drilling to be accessed. Four democrats voted in favor of the bill,while six Republicans voted against it. Two years ago, a similar bill failed just hours before the regular session ended after the House voted against it. West Virginia is one of only three producing states without some kind of pooling law. This year's session adjourns April 8.