Westside’s board of directors unanimously approved the transaction and the merger is expected to be closed during the second quarter of 2008. Westside said that its merger with Crusader will create a growth oriented company with a large unconventional resource base.
The combined net proved reserve base of both firms is more than 150 billion cubic feet (Bcfe) of which 80% is natural gas with an estimated reserve life of 15.8 years. Production at 2007 year-end was greater than 26,000 million cubic feet (Mcfe) per day of which 75% was natural gas.
The total combined acreage position is in excess of 765,000 gross acres, or approximately 316,000 net acres, which provides for a large inventory of drilling locations and resource potential. Of the gross acreage, 92% is reportedly undeveloped.
Following approval of Westside Energy stockholders, the combined company will be renamed as Crusader Energy Group and will be headquartered in Oklahoma City.
