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Title: Seagull to acquire arkla exploration

Journal Article · · Oil and Gas Journal; (United States)
OSTI ID:6938723

Seagull Energy Corp., Houston, has agreed to acquire Arkla Exploration Inc. from Arkla Inc., Shreveport, La., for about $402 million. The transaction-expected to net Seagull reserves totaling about 578 bcf of gas and 7.3 million bbl of oil and condensate-would more than double Seagull's proved reserves and nearly double its total assets. According to Seagull's 1991 annual report, the company's reserves at yearend 1991 were estimated at 401.2 bcf of gas equivalent (bcfe), including 335.1 bcf of gas and 11 million bbl of oil. Independent engineers at yearend 1991 estimated Arkla's proved reserves at 635 bcf of gas and 9 million bbl of liquids. Seagull Chairman Barry J. Galt said the company plans to keep many of Arkla Exploration's employees and to establish a meaningful presence in Shreveport. Arkla's already got good people in Shreveport and an operating base, a Seagull official said. We want to move in, put our name on the door, and continue the good operations Arkla already has. Seagull has lined up financing for the acquisition from a group of major U.S. banks. A new credit facility-consisting of a $475 million line of revolving credit and a $150 million 3 year term loan-will replace an exiting $225 million line of revolving credit. Boards of both companies have approved the deal, which Seagull and Arkla hope to close before yearend, subject to regulatory approvals and purchase price adjustments.

OSTI ID:
6938723
Journal Information:
Oil and Gas Journal; (United States), Vol. 90:47; ISSN 0030-1388
Country of Publication:
United States
Language:
English