HOUSTON, Texas - Oil and gas company Eagle Rock Energy Partners LP (Nasdaq: EROC) said before the market open on April 13 that it will buy Crow Creek Energy for $318 million in cash and stock to tap natural gas resources in Oklahoma, Texas and Arkansas.
The company will pay $303 million by issuing shares and $15 million of cash. It will also assume $207 million in debt.
"The Crow Creek acquisition provides greater scale and development potential to our upstream business," Chief Executive Joseph Mills said.
Houston-based Eagle Rock said it estimates the Crow Creek Energy properties to contain about 268 billion cubic feet equivalent of proved reserves as of Dec. 31, 2010. The proved reserve base is 80 percent natural gas.
Net production from the Crow Creek Energy properties in the first quarter of 2011 was about 47 million cubic feet equivalent per day.
Crow Creek Energy is a portfolio company of Natural Gas Partners VIII LP. After completion of the deal, Natural Gas Partners' stake in Eagle Rock will increase to about 40-45 percent from 24 percent.
Shares of EROC on April 13 closed at $11.38, up $1.32. (12.9 percent) on Nasdaq.