Capco Acquires Energy Reserves Group
Capco Energy, Inc. has signed an agreement to acquire all outstanding shares of Energy Reserves Group, LLC. (ERG), a Houston-based private limited liability company engaged in the business of oil & gas production and development.
The purchase price for ERG is $10.5 million, of which $3.25 million is paid in cash and Capco stock and the balance in the assumption of bank debt. The acquisition is expected to close within 30 days subject to bank approval.
ERG's current production is principally located in the Texas Gulf Coast and Wyoming. Current production is approximately 600 BOPD and 1400 MCFD (830 BOEPD). ERG has additional reserves that can be developed from its existing wells.
Capco CEO, Ilyas Chaudhary, said, "This acquisition will increase our current gross production to over 1,000 BOEPD and provide us the necessary cash flow, reserve base and infrastructure to significantly improve our position in the Exploration & Production business."