Bois d'Arc Ups Stake in Ship Shoal Block 113
Bois d'Arc Energy has agreed to purchase an additional 20% working interest in the Ship Shoal 113 unit by exercising certain preferential rights. The Company operates the unit and will have a 100% working interest after completing the acquisition. The purchase price is $19.2 million with an effective date of March 1, 2006. The acquisition is expected to close in September 2006. Bois d'Arc estimates that the properties being acquired have proved reserves of approximately 9 billion cubic feet of natural gas equivalent. The Company plans additional development and exploratory drilling within the unit and will expand a secondary recovery waterflood project that is underway.
Bois d'Arc also announced that it has agreed to sell 2,250,000 shares of its common stock to Comstock Resources, Inc. ("Comstock") for $35.9 million or $15.94 per share, the closing market price for the stock on August 25, 2006. The sale of common stock is expected to close by August 31, 2006. The proceeds from the sale will be used by the Company to fund the Ship Shoal 113 acquisition and to provide capital for the Company's ongoing exploration program. Subsequent to the sale, Comstock will own 32,185,761 shares of the Company's common stock which represents 49.4% of the basic shares outstanding and 48.5% of the total shares eligible to vote.
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Company: Bois d'Arc more info
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