American Standard Energy Corporation Announces Closing of Multi-Basin, Strategic Leasehold Acreage and Production Acquisition
SCOTTSDALE, Ariz., March 12, 2012 /PRNewswire/ -- American Standard Energy Corp. ("American Standard" or the "Company") (OTCBB: ASEN) today announced that on March 5, 2012, it closed and funded its acquisition of approximately 72,300 net acres and approximately 250 barrels of oil equivalent per day "BOED" of production from privately-held Geronimo Holding Corporation ("Geronimo"). Geronimo is controlled by the Company's majority stockholder and director, Randall Capps.
"This transformational acquisition uniquely complements American Standard's strong positions in three core regions: the Permian Basin, the Williston Basin and the Eagle Ford," said Scott Feldhacker, American Standard's Chief Executive Officer. "In addition to leasehold assets that provide a portfolio of long-term exploration opportunities, the acquisition of existing production provides immediate cash flow which enhances our financial position."
In addition to leasehold assets in the Company's core regions, the acquisition includes acreage in the Eagle Bine, Niobrara and Gulf Coast regions and is detailed in the following table:
BASIN/ |
ACRES |
WELLS |
||
REGION |
GROSS |
NET |
GROSS |
NET |
PERMIAN |
32,331 |
22,519 |
174.0 |
144.3 |
WILLISTON |
97,300 |
9,801 |
- |
- |
EAGLE FORD |
7,858 |
6,227 |
5.0 |
4.3 |
EAGLE BINE |
3,052 |
3,052 |
- |
- |
NIOBRARA |
51,498 |
25,749 |
- |
- |
GULF COAST / MISC |
5,310 |
4,950 |
28.0 |
26.1 |
TOTAL |
197,350 |
72,298 |
207.0 |
174.7 |
In the Permian Basin the Company acquired 22,519 net acres. The largest contiguous acreage concentrations are located in Crockett, Edwards, Crane, Lea, and Mitchell Counties, Texas. Following this acquisition, the Company holds 29,000 net acres in the Permian Basin.
The Company acquired 6,227 net acres in the Eagle Ford and now holds just over 7,400 net acres in the area, all within La Salle, Frio, Wilson, Gonzales and Maverick counties in Texas.
In the Williston Basin, North Dakota, American Standard added 9,801 net acres to its existing leasehold acreage and now holds working interests in over 42,200 net acres.
"Our ability to bring together such a significant leasehold position in three of the United States' most prolific oil exploration plays demonstrates how our strategy of capitalizing on relationships and opportunities adds value to our shareholders," added Feldhacker. "We must now focus on completing our transition from an early-stage leasehold company to a balanced non-operating exploration and production company and continue to execute on our business strategy to turn leasehold assets into producing assets and, as a result, growing the value of our enterprise."
As consideration for the assets described, American Standard paid Geronimo $10 million cash, an unsecured, subordinated note paid in the principal amount of $35 million, and five million shares of American Standard Energy's common stock, valued at $2.70 per share.
"We are pleased to complete this transaction and are excited about the potential the newly acquired assets provide to add value to our stockholders," said Scott Mahoney, American Standard's Chief Financial Officer.
About American Standard Energy
American Standard Energy Corp. is an oil and gas exploration and production company based in Scottsdale, Arizona. The Company's oil and gas asset includes majority working interest assets in the Permian Basin and non-operated acreage in the Williston Basin and Eagle Ford resource prospects. The Company currently controls approximately 112,000 net acres.
Forward Looking Statements
Except for the historical information contained herein, this press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may," "continue" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, our ability to raise capital, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices.
We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.
CONTACT:
Investor Relations
Jon Kruljac
GVC Advisors
(303) 694-0862
SOURCE American Standard Energy Corp.
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