Dome Energy AB. (Ticker: DOME) herein after “Dome”) is pleased to announce that it has completed the acquisition of Gas Ventures LLC effective as of October 1st. The transaction is valued at ~$24 million, based on closing price of Dome shares, Friday October 17th.
The acquisition lifts Dome’s production to approx. 1,450 barrels of oil equivalent per day (boepd) and provides the platform for both short and long-term production growth. As part of the agreement Dome will issue 6 million shares and $11.5 unsecured notes in Dome Energy AB. The outstanding shares for the Company will be 34,001,945.
An established player in Wyoming, Gas Ventures LLC has a strong operational team with over 150 years regional expertise experience. The Company operates seven wholly owned fields in the Bighorn and Wind River Basins with current production approx. 200 barrels of oil per day (bopd).
Gas Ventures has recently commenced drilling operations targeting to increase production to 1,900 bopd. The portfolio contains numerous development drilling locations along with low-cost work-over and recompletion candidates.
The acquisition expands Dome’s long-term development program with numerous development drilling targeting conventional oil. Through this, Dome plans to reach 2,000 boepd within eight months and total production of 5,000 boepd following completion of the full program.
Paul Morch, CEO, noted “The qualified and experienced team we add to our personnel through this acquisition will be utilized for the development of all our assets. The deal increases our already strong free-cashflow position and adds reserves that can be included to our reserve base lending facility with Societe Generale. We have a great platform for organic growth and it fits within our proven business model of low-risk development drilling. Our stable cashflow gives us great flexibility whether it be increasing investment in drilling new wells, dividends to our shareholders or both.”