American Oil and Gas Reporter - November 2022 - 18

IndustryDigest
private in June at a price of $70 a share,
and quotes him as suggesting the move
will " enhance our ability to maintain our
competitive edge and will also enable us
to be even more nimble in our efforts to
create value through the drill bit. "
As soon as practicable after the
consummation of the tender offer,
Continental says Omega will merge with
and into Continental, with Continental
continuing as the surviving corporation,
wholly owned by the Hamm family.
Continental points out that the offer
price represents a 15% premium to the
common stock closing price of $64.50
as of June 13, before the Hamm family's
initial June 14 offer to Continental.
Continental indicates there is no
financing condition to the transaction,
which the company predicts will be
financed with a combination of the
company's cash on hand, borrowings
under the company's existing revolving
credit facility and a new term loan
facility to be entered into in connection
with the transaction's close.
The company says the transaction is
governed by Section 1081.H of
Oklahoma's General Corporation Act
and does not require a vote of the
Continental shareholders. Continental
projects the transaction will close before
the end of 2022. ❒
Diamondback Expands
Midland Basin Holdings
MIDLAND-Diamondback Energy
Inc. has entered an agreement to
acquire all leasehold interest and
related assets of FireBird Energy LLC
in exchange for 5.86 million shares of
Diamondback common stock and $775
million of cash.
According to Diamondback, the
assets include:
· Approximately 75,000 gross
(68,000 net) highly contiguous acres in
the Midland Basin;
· Estimated production at closing of
approximately 17,000 barrels of oil a
day (22,000 barrels of oil equivalent a
day);
· 2023 estimated average
production of approximately 19,000
bbl/d (25,000 boe/d); and
· 353 estimated gross (316 net)
horizontal locations in primary
development targets with an average
lateral length of approximately 11,400
feet and 84 gross upside locations
from co-development based on recent
well results.
The acquisition's primary targets are
the Middle Spraberry, Lower Spraberry,
Wolfcamp A and Wolfcamp B formations,
Diamondback describes. The company
says 98.5% of the acreage is operated
with an average 92% working interest;
84% of the acreage is held by production.
" This bolt-on acquisition adds
significant, high-quality inventory right in
our backyard, " states Diamondback
Chairman and Chief Executive Officer
Travis Stice. " With over 350 locations
adjacent to our current Midland Basin
position, this asset adds more than a
decade of inventory at our anticipated
development pace, including inventory
that competes for capital right away in
Diamondback's current development plan.
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18 THE AMERICAN OIL & GAS REPORTER
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American Oil and Gas Reporter - November 2022

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