Chaparral Energy in deal to go public
OKLAHOMA CITY — Privately held oil and gas producer Chaparral Energy Inc. would go public as a result of a deal with United Refining Energy Corp., a company created two years ago to make deals in the energy business.
Under the plan announced late Monday, Chaparral shareholders would have a majority of the shares in the new company which would carry its name and would be led by Chaparral’s senior management.
The deal is expected to close by Dec. 11. The combined company’s shares will trade on the American Stock Exchange until they are approved for transfer to the New York Stock Exchange, under the ticker symbol “CPR.”
Assuming a combined company stock price of about $10 per share, the companies said the total value of the new business would be $1.8 billion.
Chaparral shareholders will receive 58 million shares in the combined company, or a 59 percent stake. United Refining shareholders will own 35 percent of the company and the United Refining sponsor will hold a 6 percent stake.
New York-based United Refining was formed in late 2007 in order to purchase or merge with businesses in the energy industry. It had about $452 million in trust at Sept. 30.
Founded in 1998, Oklahoma City-based Chaparral has developed oil and gas properties and drilling projects in the Permian Basin, on the Gulf Coast, North Texas and in the Rocky Mountains, among other locations. As of June 30, Chaparral’s proved reserves totaled 146 million barrels of oil equivalent, 62 percent of which is oil, and its average daily production for the first half of 2009 was 21,000 barrels of oil equivalent per day.
Chaparral said its co-founder, Chairman and CEO Mark A. Fischer and Chief Financial Officer Joseph O. Evans will continue to lead the combined company. John A. Catsimatidis, United Refining’s current CEO and chairman, will be chairman of the new company’s board.
The deal “will give Chaparral access to capital we need to exploit our large inventory of drilling and development opportunities and to significantly step up our enhanced oil recovery program,” said Fischer, in a statement late Monday.
United Refining shares fell 2 cents to $9.94 on Monday.
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