Increases production to 1,200 barrels per day and proven reserves of >8 million barrels of oil equivalents with a diversified portfolio of oil, condensate and natural gas and a strong operating cash flow. Dome Energy AB. (https://www.domeenergy.com) (Ticker: DOME (http://www.nasdaq.com/symbol/els/dome)) herein after “Dome” and/or “the Company”) is pleased to announce that through its fully owned subsidiary Dome Energy Inc. it has entered into a purchase agreement and a separate binding letter of intent (LOI) to acquire two independent US Oil and Gas Companies.
The acquisition transforms Dome into a significant onshore American Oil and Gas producer with total production of 1,200 barrels of oil equivalent per day (boepd). Production derives from a balanced and diversified portfolio of Oil, Condensate and Gas produced in Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Texas and Wyoming.
An independent reserve report conducted by Ralph E. Davis has increased Dome’s reserves to >8 million barrels of oil equivalent.
The Company has entered into a purchase agreement effective July 1, 2014 to acquire VistaTex Energy LLC and the Company has entered into a binding LOI to acquire properties from Range Ventures LLC with an effective date of October 1, 2014.
The $35 million purchase price of VistaTex Energy LLC is fully financed through a new $40 million credit facility with the Company’s current bank. Dome considered numerous offers from other banks and institutions. The terms from Green Bank are advantageous to the shareholders on the basis of favorable covenants along with an attractive interest rate of =4%. This transaction adds 700-800 barrels of oil equivalent per day (boepd) to Dome’s overall production.
The binding LOI to acquire properties from Range Ventures LLC sets the acquisition price at $27 million. The sellers will receive 6 million new shares along with newly issued debt in Dome Energy AB. The assets are located in the Bighorn and Wind River Basin, Wyoming (WY). Production is estimated at minimum 200 barrels of oil per day (bopd) at closing with a development portfolio targeting over 1,500 bopd.
Through the transactions the Company is adding experienced operational staff in order to manage and operate the substantially expanded asset base. The purchase brings in operated and non-operated partnerships with Anadarko (NYSE: APC), BP (NYSE: BP), Chesapeake (NYSE: CHK), EOG Resources (NYSE:EOG), and XTO (subsidiary of ExxonMobil NYSE: XOM).
With the completion of the acquisitions, the Company will start work on the new assets together with Dome’s existing development program to aggressively boost production. The expanded program will consist of completions, re-completions and development drilling of multiple new wells. Target production is to reach 2,000 boepd within 12 months and total production of 5,000 boepd following completion of the full program.
Paul Morch, CEO, commented: “With these transactions, we will be an oil and gas company with a geographically diverse portfolio. Our cash flow indicates a yearly EBITDA of >$10 million given current market conditions, and with our exciting development program and well optimization, we have a significant upside to this number. To deliver a stable cash flow as well as development potential is key to attract international institutional investors. With these transactions we will increase our production five-fold. We are excited about the consolidation and development phase we are now entering, and look forward to update the market further on our growth.”
For further information please contact:
Susanna Helgesen, CFO Phone: +46 708 27 86 36 US phone: +1 281 558 8585 E-mail: email@example.com
About Dome Energy Dome Energy AB. is an independent Oil & Gas Company publicly traded on the Nasdaq OMX First North exchange in Sweden (Ticker: DOME (http://www.nasdaq.com/symbol/els/dome)). Remium Nordic AB is the Company’s Certified Adviser. Headquartered in Houston, Texas, the Company’s focus is on the development and production of existing onshore Oil & Gas reserves in the United States. For more information visit www.domeenergy.com.
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http://mb.cision.com/Main/10080/9606521/259783.pdf Press release (PDF)