KLR Energy Acquisition and Tema Oil & Gas Co. to form Rosehill Resources in the Delaware basin
HOUSTON -- KLR Energy Acquisition Corp., an oil and gas E&P focused special purpose acquisition entity, has announced that it has entered into a Business Combination Agreement with Tema Oil & Gas Company, a private company with assets in the core of the Delaware basin, in Loving County, Texas.
The transaction was unanimously approved by the respective boards of directors of the companies and is expected to close in the first half of 2017, subject to certain closing conditions, including receipt of KLR Energy shareholder approval. Upon completion of the business combination, KLR Energy will change its name to Rosehill Resources Inc. and will apply to continue to trade on The NASDAQ Capital Market under the new ticker symbols ROSE, ROSEU, ROSEW. Rosehill Resources intends to significantly accelerate drilling on Tema's high-quality operated acreage position and pursue strategic acquisitions.
Rosehill Resources operating highlights:
- 4,771 net acres in the core of the Delaware basin, greater than 80% held by production and 99% operated
- Net production expected to be greater than 6,000 boed in January 2017
- 70.1 MMboe of total 3P reserves as of June 2016, based on Ryder Scott reserve report
- Approximately 200 potential drilling locations on current leaseholds, includes stacked pay consisting of 10 benches totaling 3,000 ft of reservoir thickness
- Expected 9 years of inventory (using a 2-rig program) with significant upside through downspacing program
- Aligned veteran leadership, averaging 30-plus years of E&P operating experience, deep technical knowledge of the Delaware basin, and a 10-plus-year track record of drilling horizontal shale wells
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