Under the terms of the merger agreement, Bois d’Arc stockholders will receive $13.65 in cash and 0.165 shares of Stone Energy common stock for each share of Bois d’Arc common stock. The transaction has an aggregate value of approximately $1.8 billion.
Following the merger, Stone expects to produce over 300 million cubic equivalent per day and have over 700 billion cubic equivalent (bcfe) of estimated proved reserves and approximately 275bcfe of estimated probable reserves, with a multi-year exploration prospect inventory, extensive 3D seismic coverage over the Gulf of Mexico and a material leasehold position of over 800,000 net undeveloped acres.
David Welch, CEO of Stone, said: Bois d’Arc is an outstanding fit with Stone given the complementary asset bases, strategies and skill sets of the two companies. Stone is a strong exploitation and development company and combined with Bois d’Arc’s outstanding inventory of shelf exploration prospects, the combined company will be a leading Gulf of Mexico producer.
