Wednesday, April 25, 2012

Halcon Buys GeoResources

Here is the announcement of the price being paid:

Halcón Resources Corporation (NYSE: HK) (“Halcón Resources”) and GeoResources, Inc. (NASDAQ: GEOI) (“GeoResources”) today announced that they have entered into a definitive merger agreement in which GeoResources will merge into a wholly-owned subsidiary of Halcón Resources in a cash and stock transaction that values GeoResources at approximately $1.0 billion, based on the closing price of Halcón Resources common stock on April 24, 2012.  

That is one billion for the assets detailed in the presentation below, which shows 7,000 barrels per day of production and about 30 million barrels of proved reserves both of which are about 65% oil.

$1 billion / 7,000 = $142,000 per flowing barrel

$1 billion / $30 = $33 per proved barrel

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