Dome Energy has closed the VistaTex transaction effective as of 1 July, 2014 to a purchase price of approx. $33.5 million. The acquisition is fully financed by Societe Generale to an interest rate of 3.75%. Estimated production for July is 1,250 barrels of oil equivalents per day.
Dome Energy AB. (Ticker: DOME) herein after “Dome” and/or “the Company”) is pleased to announce that through its fully owned subsidiary Dome Energy Inc. it has closed the previously announced acquisition of VistaTex Energy LLC effective as of 1 July, 2014. After taking over a hedge portfolio that developed in the favor of Dome the purchase price has been adjusted from $35 million to approx. $33.5 million.
Paul Morch, CEO of Dome, commented: “We have reached a new milestone in our development by producing 1,250 barrels of oil equivalents per day. We have done so by growing organically and through acquisitions. As our portfolio is both operated and non-operated, it will take some extra time to consolidate the actual production numbers. The first consolidated month with our VistaTex acquisition is the month of July. Our operated production is already known, but the non-operated will be received late September and thereafter the total production will be communicated to the market.”
“With the acquisition of VistaTex we have fivefolded our production and as our ambition is to keep growing organically and through acquisitions we have decided to change bank from our local Texas bank to Societe Generale. They offered better terms with an interest rate of 3.75% and also a more comprehensive solution that we believe will benefit the Company as we are growing.”