NEW YORK, Nov 1 (Reuters) - Oil exploration and production company Denbury Resources Inc said on Sunday it will acquire Encore Acquisition Co in a transaction valued at about $4.5 billion.
The transaction, expected to close in the first quarter of next year, will create one of the largest carbon-dioxide enhanced oil recovery platforms across the Gulf Coast and Rocky Mountain regions, the companies said in a joint statement.
The acquisition price includes the assumption of debt and the value of the minority interest in Encore Energy Partners LP. The combined company will continue to be known as Denbury Resources and will be have headquarters in Plano, Texas.
Under the definitive agreement, Encore stockholders will receive $50 per share for each share of Encore common stock, comprising $15 in cash and $35 in Denbury common stock, they said.
The combined companies will have over 500 million BOE (barrels of oil equivalent) of additional potential barrels recoverable with CO2 tertiary operations.
(Reporting by Steve James, editing by Martin Golan) Keywords: ENCORE/ACQUISITION (steve.james@thomsonreuters.com; +1 646-223-6013; Reuters Messaging: steve.james.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The transaction, expected to close in the first quarter of next year, will create one of the largest carbon-dioxide enhanced oil recovery platforms across the Gulf Coast and Rocky Mountain regions, the companies said in a joint statement.
The acquisition price includes the assumption of debt and the value of the minority interest in Encore Energy Partners LP. The combined company will continue to be known as Denbury Resources and will be have headquarters in Plano, Texas.
Under the definitive agreement, Encore stockholders will receive $50 per share for each share of Encore common stock, comprising $15 in cash and $35 in Denbury common stock, they said.
The combined companies will have over 500 million BOE (barrels of oil equivalent) of additional potential barrels recoverable with CO2 tertiary operations.
(Reporting by Steve James, editing by Martin Golan) Keywords: ENCORE/ACQUISITION (steve.james@thomsonreuters.com; +1 646-223-6013; Reuters Messaging: steve.james.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.