US-based onshore oil company EnerJex Resources has signed a merger agreement to buy oil and natural gas exploration and production company Black Raven.
Once the merger is complete, each share of Black Raven common stock will be changed to an exchange ratio of 0.34791 of EnerJex’s share, allowing Black Raven stockholders to own around 37% of the post-merger company on a diluted basis.
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With the merger, a new midcontinent-focused independent oil and gas exploration and production company will be formed, which will focus on unconventional oil resource plays in the Denver-Julesburg (DJ) basin.
EnerJex CEO Robert Watson Jr said that the two teams would complement each other while adding depth and talent in non-overlapping areas between the two companies.
"I strongly believe this transaction will enable EnerJex to accelerate growth and increase per-share value while exposing our shareholders to a substantial amount of upside potential," Watson Jr added.
Black Raven holds 75,000 net acres in the DJ basin, around 45,000 of which are under production.
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By GlobalDataIn Colorado, the company holds a 100% working interest in 19,000 acres in Morgan county, covering the vast majority of the Adena field.
The Colorado Oil and Gas Conservation Commission estimated that Adena is the third largest oil field in the history of Colorado, behind Rangely and Wattenberg. It has produced 75 million barrels of oil and 125 billion cubic feet of natural gas.
Black Raven currently produces about 250 gross barrels of oil and natural gas equivalent (68% oil) a day from eight J-Sand wells and seven D-Sand wells in the field at a depth of approximately 5,500ft.
Image: Black Raven owns leases covering more than 55,000 net acres located in Phillips and Sedgwick Counties; Photo: courtesy of GeographBot.
