Invoice Barrett Corp., considered one of Colorado’s largest publicly-traded oil and gasoline producers, plans to mix with privately-held Fifth Creek Vitality in a deal valued at $649 million.
The 2 Denver-based firms will change into subsidiaries of a brand new public holding firm that can management 151,100 web acres and a listing of two,865 undeveloped drilling areas within the Hereford Area in rural northern Weld County.
In comparison with different elements of the Denver-Julesburg Basin, the Hereford’s output skews extra in direction of oil, which made up 84 % of output from lately drilled wells. The mixed firm plans to function three drilling rigs subsequent yr and spend $500 million to $600 million to spice up manufacturing.
Invoice Barrett CEO and president Scot Woodall will function chief government of the brand new firm, whose board will include Invoice Barrett’s six present administrators and 5 administrators that Fifth Creek will appoint.
Invoice Barrett additionally stated Wednesday it had raised $105 million in a public providing of 21 million shares to assist fund future spending. Buyers, nevertheless, didn’t react nicely, pushing the corporate’s shares down 18.7 % to $four.65 a share.
The merger is anticipated to happen within the first quarter or early second quarter pending shareholder and regulatory approvals.