Scandinavian Oil-Gas Magazine
http://www.scandoil.com/moxie-bm2/news/pacific-energy-development-enters-into-three-major.shtmlPacific Energy Development enters into three major agreements
Pacific Energy Development has entered into three major agreements that strengthens the Company for long-term success and growth.
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Pacific Energy Development has entered into three major agreements that strengthens the Company for long-term success and growth. The following summarizes these agreements: •Acquired approximately 13,000 net D-J Basin acres and interests in 53 gross wells, producing approximately 500 BOE/D from Golden Globe Energy (US), LLC ('GGE'). This immediately: ◦Doubles the Company's cash flow and reserves ◦Reduces the Company's debt by 53% per share ◦Increases the Company's equity value to $1.28 per share
•Enters into Heads of Agreement for a transformational accretive business combination with Dome Energy (OMX:DOME) with production of over 1,250 BOE/D that would: ◦Pay off existing senior debt of the Company ◦Provide drilling capital with a 3.75% bank credit facility ◦Provide additional capital to buy back Company stock ◦Provide an estimated PV10 of 1P reserves of approximately $280 million ◦Increase production to an estimated 3,300 BOE/D at closing
