Tallahassee, FL 12/12/11 (StreetBeat) -- Former Petrohawk Energy Corp. head Floyd C. Wilson will become the chief executive officer of Ram Energy Resources Inc. (Nasdaq: RAM) after leading a $550 million purchase of a majority stake in the oil and natural-gas producer.Wilson’s Halcon Resources LLC will buy $275 million of new shares, issue a $275 million note convertible to common stock and get warrants to buy another 110 million shares, Tulsa, Oklahoma-based Ram said in a statement today. The deal is expected to close next quarter.
Wilson left Petrohawk after the $12.1 billion sale of the Houston-based company to BHP Billiton Ltd. in August. Ram said it will use the Halcon investment to accelerate drilling in the Mississippian oil play in Oklahoma. Halcon will get about 74 percent of Ram’s outstanding shares and the company’s name will change to Halcon Resources Corp.
“Floyd Wilson has an outstanding track record of successfully growing small-cap exploration and production companies such as Ram into value-rich large-cap enterprises,” Larry E. Lee, Ram co-founder and its current chairman and chief executive officer, said in today’s statement.
EnCap Investments LP, Liberty Holdings LLC and Mansefeldt Investment Corp. joined closely held Halcon in the investment, Ram said. Mitchell Energy Advisors represented Halcon and Jefferies & Co. advised Ram.
Jefferies was Ram’s largest shareholder with a 22 percent stake as of Sept. 30, according to data compiled by Bloomberg. Lee owned about 13 percent as of a Dec. 15 filing.
The announcement was made before regular trading began on U.S. markets. Ram rose 36 percent to $1.50 at 8:22 a.m. in New York. Before today, it had fallen 40 percent this year.
StreetBeat Disclaimer
Hi, this blog is really provide amazing helpful information.
ReplyDeleteThanks for sharing.
Payday Leads