Yesterday, Doral Energy Corp. announced that they entered into a Letter of Intent to combine with Pure Gas Partners II, L.P. of San Antonio, Texas. This business combination, which will be effected through the issuance of common shares of Doral Energy, will result in an effective change of control with current stakeholders of Pure owning eighty percent of the combined entity post-transaction.
Doral Energy Corp. will, as part of this business combination, among other things, conduct a reverse stock split and name change. The combined entity will have their corporate headquarters in San Antonio, Texas while maintaining an operations office in Midland, Texas. Doral’s current Senior Management, Mr. E. Will Gray II, will remain Chairman and CEO, while Mr. Larry Risley, of Pure will move into the role of President and COO.
Pure Gas Partners II, L.P. is a Limited Partnership. They have interests in approximately 600,000 gross acres located within the state of New Mexico. Net Acreage consists of approximately 300,000 net acres with approximately 30,000 net acres located within the Permian Basin of Southeastern New Mexico. Ninety eight percent of all acreage is held by production (HBP) with the largest percentage being Fee Mineral.
Pure Gas Partners II, L.P. owns varying operated and non-operated working interests, ranging from one percent to fifty percent, in approximately 75 gross wells located within Eddy, Lea, and Chaves Counties, New Mexico with net current production of approximately 230 BOEPD. Pure’s major operating partners include Mariner Energy, Inc. (soon to be Apache), Concho Resources, Mewbourne, Devon and Cimerax.
Headquartered in Midland, Texas, Doral Energy Corp. is an oil and gas exploitation and production company. The Company’s strategy is to grow a portfolio of under-developed production and exploitation assets with the potential for generating near-term increases in existing production. This is through operational improvements and longer-term development of proved undeveloped reserves by infill drilling.
They concentrate on identifying acquisitions that generate immediate cash flow from production, but which also have strong proved developed non-producing and proved undeveloped reserves that can be tapped for significant growth. The prolific Permian Basin of Texas and New Mexico is their geographic region of focus for future acquisition activity.
For more information visit: www.DoralEnergyCorp.com
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