NTO, being acquired..This is another one of my small oils being acquired in the last year(ORB,SDX,ARC,BDX(sort of)). Scott
Southern Mineral to acquire Neutrino
Neutrino Resources Inc NTO
Shares issued 24,760,701 May 12 close $1.41
Wed 13 May 98 News Release
Mr. James Price reports
The company and Southern Mineral of Houston have signed a definitive
agreement for the acquisition of the company by Southern for cash
consideration of $1.80 per share. Total cash consideration is estimated to
be $57.4-million. In addition, Southern would be assuming the company's
bank debt and working capital deficiency, which was approximately
$21.5-million as of March 31, 1998.
The transaction has been approved by the board of directors of both
companies. Southern has indicated its desire to retain the current
employees and management of the company. The definitive agreement embodies
a lock-up arrangement with officers, directors and significant
shareholders. The company has agreed to a breakup fee representing 5 per
cent of the total consideration available to shareholders. Closing is
scheduled by June 30, 1998.
Based on independent engineering evaluations, the company's total proved
reserves as of Jan. 1, 1998 were 37.4 billion cubic feet of natural gas and
6,146,000 barrels of oil and natural gas liquids for a total of 74.3
billion cubic feet equivalent (oil and liquids are converted to gas at
6,000 cubic feet for each barrel). The proposed transaction would increase
Southern's total proved reserves by 78 per cent from an end of the first
quarter internal estimate of 94.8 billion cubic feet equivalent to 169
billion cubic feet equivalent.
During fourth quarter 1997, Neutrino produced an average of 12.4 million
cubic feet of natural gas and 2,020 barrels of oil and natural gas liquids
per day for a total of 24.5 million cubic feet equivalent of daily
production. The proposed acquisition would increase Southern's daily
production to more than 50 million cubic feet equivalent.
The proposed acquisition also increases Southern's undeveloped land
holdings in Canada by more than 400 per cent from 14,695 net acres to
74,670 net acres. Neutrino also holds an extensive data base of two and
three dimensional seismic.
Southern Mineral is an oil and gas acquisition, exploration and production
company that owns interests in oil and gas properties along the Gulf Coast,
Mid-Continent, Canada and Ecuador. Southern is listed on Nasdaq under the
symbol SMIN.
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