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  • American Standard Energy Corp. (ASEN) Acquires 72,300 Net Acres From Geronimo Holding 0 comments
    Mar 12, 2012 5:27 PM | about stocks: ASENQ

    American Standard Energy, an oil and gas exploration and production company with working interest assets in the Permian Basin and non-operated acreage in the Williston Basin and Eagle Ford resource prospects, today announced it has completed the acquisition of approximately 72,300 net acres and approximately 250 barrels of oil equivalent per day BOED of production from privately held Geronimo Holding Corp.

    American Standard paid Geronimo $10 million cash, an unsecured, subordinated note paid in the principal amount of $35 million, and 5 million shares of American Standard common stock, valued at $2.70 per share.

    The acquisition is complementary of American Standard's current operations and boosts the company's financial strength.

    "This transformational acquisition uniquely complements American Standard's strong positions in three core regions: the Permian Basin, the Williston Basin and the Eagle Ford," Scott Feldhacker, American Standard's CEO stated in the press release. "In addition to leasehold assets that provide a portfolio of long-term exploration opportunities, the acquisition of existing production provides immediate cash flow which enhances our financial position."

    In addition to leasehold assets in American Standard's core regions, the acquisition includes acreage in the Eagle Bine, Niobrara, and Gulf Coast regions.

    In the Permian Basin the Company acquired 22,519 net acres, bringing the company's holdings on this site to a total of 29,000 net acres.

    In the Eagle Ford region, the company acquired 6,227 net acres and now holds just over 7,400 net acres in the area.

    In the Williston Basin in North Dakota, American Standard added 9,801 net acres to its existing leasehold acreage, bringing its current working interests to more than 42,200 net acres.

    "Our ability to bring together such a significant leasehold position in three of the United States' most prolific oil exploration plays demonstrates how our strategy of capitalizing on relationships and opportunities adds value to our shareholders," Feldhacker stated. "We must now focus on completing our transition from an early-stage leasehold company to a balanced non-operating exploration and production company and continue to execute on our business strategy to turn leasehold assets into producing assets and, as a result, growing the value of our enterprise."

    Geronimo is controlled by American Standard's majority stockholder and director, Randall Capps.

    For more information visit asenergycorp.com

    Please see disclaimer on the QualityStocks website: disclaimer.qualitystocks.net

    Stocks: ASENQ
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