DOME ENERGY AB. ACQUIRES A LARGE PORTFOLIO OF PRODUCTION AND DEVELOPMENT ASSETS
ET | Source:Dome Energy AB
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,
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
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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