Shawshank,VA 4/25/12 (StreetBeat) -- Independent energy company Halcon Resources Corp. (NYSE: HK) is buying oil and gas company GeoResources Inc. (Nasdaq: GEOI) in a cash-and-stock deal valued at about $1 billion.GeoResources stockholders will receive $20 in cash and 1.932 shares of Halcon stock for each GeoResources share that they hold. This represents a total consideration of $37.97 per share based on Halcon's closing price Tuesday of $9.30. GeoResources' stock closed at $30.77 Tuesday, making the total consideration a 23 percent premium.
Shares of Halcon added 68 cents, or 7.3 percent, to $9.98 in premarket trading on Wednesday, while GeoResources' stock jumped $4.43, or 14.4 percent, to $35.20.
GeoResources shareholders are expected to own about 18 percent of the combined company's outstanding stock once the deal closes. Both companies are based in Houston.
Halcon's Floyd Wilson will remain as chairman, president and CEO. Mark Mize will continue as executive vice president, chief financial officer and treasurer.
Wilson said in a statement that the acquisition will more than double Halcon's estimated proved reserves to about 52.8 million barrels of oil equivalent.
Both companies' boards have unanimously approved the buyout, but it still needs the approval of the companies' shareholders.
The acquisition is expected to close in the third quarter.
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