Warren Resources, Inc. has closed on its previously announced acquisition of the Marcellus assets of Citrus Energy Corporation and two additional working interest owners for $352.5 million. The purchase price consisted of $40 million in Warren common stock priced at $6.00 per share, and approximately $312.5 million paid in cash, subject to further customary post closing adjustments.
In connection with the acquisition, Warren also entered into a five-year, Third Amended and Restated Credit Agreement, with Bank of Montreal, as Administrative Agent, which will provide for a maximum credit amount of $750 million and an initial borrowing base of $225 million.
"This acquisition provides Warren with scale and diversification into a new core basin and leverages Warren's engineering and operational expertise in exploiting known geologic resources," remarked Philip Epstein, Warren's Chairman and CEO. "Additionally, we are excited to have Citrus' Co-Founder and CEO, Lance Peterson, join our Board, and welcome the expertise that he and his team will bring to Warren."
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