Laredo Petroleum Completes Broad Oak Energy Acquisition

TULSA, Okla., July 6, 2011 /PRNewswire/ -- Laredo Petroleum, LLC ("Laredo") announced that it has now completed the previously announced acquisition of Broad Oak Energy, Inc. ("Broad Oak").

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The aggregate consideration paid was approximately $1 billion and consisted of approximately 2/3 of newly issued units of Laredo equity and 1/3 cash.  The cash portion of the transaction was funded under Laredo's amended and restated $1 billion bank credit facility led by Wells Fargo Securities, LLC, BofA Merrill Lynch and J.P. Morgan Securities LLC, as joint lead arrangers.  The amended and restated bank credit facility has an initial borrowing base of $650 million, of which $500 million was borrowed and outstanding following the closing of the acquisition.

This acquisition increases Laredo's size and positions it for continued growth in the oil-rich Permian Basin and the liquids-rich Granite Wash play.  On a pro forma basis giving effect to the  acquisition, Laredo has:

• total proved reserves of 840 Bcfe, consisting of 49 million barrels of crude oil and 547 Bcf of natural gas, as of March 31, 2011;
• average daily combined production of 130 MMcfe for the three months ended March 31, 2011, consisting of 40% crude oil and 60% natural gas plus associated natural gas liquids;
• a land position consisting of approximately 489,000 gross acres (338,000 net acres); and
• a total of 12 operated drilling rigs running, with eight drilling vertical wells and four drilling horizontal wells.  Ten of these rigs are working in the Permian Basin and two in the Granite Wash play located in the Anadarko Basin.  

The Broad Oak properties are concentrated on a contiguous land position located in the Permian Basin of West Texas primarily in Reagan County.  This acreage is immediately south of, and on trend with Laredo's existing Permian Basin properties in Howard and Glasscock Counties.  The combined acreage position in the Permian Basin consists of approximately 166,000 gross acres (126,000 net acres).

Randy Foutch, Laredo's Founder, Chairman and CEO said:  "We welcome the Broad Oak employees to the Laredo team and intend to continue the active development and exploration of the combined company's attractive property base."

Tudor, Pickering, Holt & Co. Securities, Inc. served as financial advisor to Laredo.  J.P. Morgan Securities LLC served as financial advisor to Broad Oak.

Additional Information

Units of Laredo ("Units") have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Units or any other Laredo security, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful.

About Laredo Petroleum:

Laredo Petroleum, LLC is a privately owned energy company focused on the exploration, development and acquisition of oil and natural gas in the Mid-Continent and Permian regions of the United States with headquarters in Tulsa, Oklahoma.  It was founded in October 2006 by Randy Foutch and other members of Laredo's management team.  Laredo is the third private exploration and production company formed by Randy Foutch in partnership with affiliates of private equity investment firm Warburg Pincus.  Additional information about Laredo may be found on its website www.laredopetro.com.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements.  The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could," or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature.  However, the absence of these words does not mean that the statements are not forward-looking.  These statements are based on certain assumptions made by the company based on management's expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate.  Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statement, including but not limited to the expected benefits of the Broad Oak acquisition, including expected future financial and operating results; the expected amount and timing of operating synergies; the ability to successfully integrate the businesses and produce reserves; the unexpected liabilities that may arise from the transaction; the company's plans; and other expectations, objectives, intentions and historical facts.  In addition, any pro forma information included in this press release is not necessarily indicative of future or actual results that will be achieved or that might have been achieved had the acquisition closed for the time periods assumed by such information.  Except as required by law, Laredo does not undertake to update or revise any forward-looking statement.

CONTACT:
Laredo Petroleum, LLC
Mark Womble - Chief Financial Officer
(918) 513-4570
[email protected]

SOURCE Laredo Petroleum, LLC