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Chevron Australia starts gas production from $2.1B onshore LNG facility

Oil & Gas Financial Journal

Stone Energy Corp. has completed its acquisition of Bois d'Arc Energy Inc. Stone paid approximately $935 million in cash and issued approximately 11.3 million shares in connection with this transaction. Stone funded the cash portion of the acquisition with cash on hand of approximately $510 million and borrowings of $425 million under its newly amended and restated $700 million credit facility.

Comstock Resources Inc. sold its 49% interest in its subsidiary Bois d'Arc to Stone pursuant to the previously announced merger between Stone and Bois d'Arc. Comstock received $440 million in cash and 5,317,069 shares of common stock of Stone. Comstock used the cash proceeds to repay amounts outstanding under its bank credit facility.

David Welch, president and CEO of Stone, stated, "The acquisition of Bois d'Arc will provide Stone with a substantial inventory of exploration and exploitation projects. We expect to move quickly to absorb operations and to accelerate our combined drilling program. We welcome those Bois d'Arc employees who have elected to join Stone, and we also look forward to working with Gary Blackie and his exploration group through our new participation agreement with Bois d'Arc Exploration LLC."