Par Pacific leads investment for Laramie to acquire Piceance Basin assets

Par Pacific Holdings Inc. (NYSE MKT: PARR) is leading an investment by which Piceance Energy LLC, d/b/a Laramie Energy Co., has entered into an agreement to acquire certain properties in the Piceance Basin for $157.5 million. 

Laramie Energy has commitments to fund the transaction with $57.5 million of borrowings under its amended reserve based revolver, $30 million of preferred equity issued to a major financial institution, and $70 million of common equity investment including $55 million from Par Pacific. 

The assets consist of 89 million cubic feet equivalent per day (MMcfe/d) of existing production during November, 283 billion cubic feet equivalent (bcfe) of proved developed producing reserves as of November, and more than 53,000 net operated acres and more than 18,000 net non-operated acres. A portion of the operations acquired are adjacent to existing Laramie operations. 

The transaction is expected to close on or before March 1, 2016, and once complete, Laramie will assume ownership and operatorship of the purchased properties. As part of the acquisition financing, the company's ownership interest in Laramie is expected to increase from 32.4% to 42.3% as a result of its $55 million common equity investment.

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