woodford shale peer acquisition

http://www.pennenergy.com/articles/pennenergy/2014/02/american-energy-woodford-raises-funds-to-acquire-shale-production-acreage.html
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American Energy Woodford raises funds to acquire shale production acreage


February 24, 2014

By PennEnergy Editorial Staff


Source:American Energy - Woodford, LLC


American Energy - Woodford, LLC (AEW), an affiliate of American Energy Partners, LP (AEP-LP), announced today that it has raised $500 million in equity commitments and secured $180 million in bank borrowings to pursue a business plan focused on the Woodford Shale/Mississippi Lime combination play in central northern Oklahoma (an area AEW has named the "CNOW play").

AEW's exclusive private equity investor is The Energy & Minerals Group (EMG) and additional equity commitments have been provided by AEW management and others. EMG manages a family of funds that invest in the energy and minerals sectors and have over $8.4 billion of assets under management. AEW's bank credit facility is led by Texas Capital Bank.

Financing proceeds will initially be used to acquire approximately 120,000 net acres of leasehold and approximately 6,000 net bbls of oil equivalent daily production in the CNOW play with the goal of establishing a leasehold position of up to 200,000 net acres over time.

AEW is acquiring the assets from four sellers: Calyx Energy, LLC; Calyx Energy II, LLC; Liberty Energy, LLC; and Truevine Operating, LLC. Calyx Energy, LLC and Calyx Energy II, LLC were both backed by the Los Angeles-based Kayne Anderson Energy Funds and Liberty Energy, LLC is managed by Boston-based Old Ironsides Energy.

Commercial Law Group and Andrews Kurth LLP provided legal representation to AEW and Baker Botts L.L.P. provided legal representation to EMG.
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So looks like American Energy is paying $680M to acquire 120,000 net acres of the leasehold and 6,000 net bbls of oil per day.

RFE producing 2,275 net bbls of oil in January and have a 70,000 acres so quite comparable.

This peer acquisition values us at 70,000 / 120,000 x $680
= $400M US
less the $100M debt + $35M Cash
= $335M US or $372M AUD

$0.75c per share!!!
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