Houston-based energy technology company Glori has closed its buy of producing oil assets in Wood County, Texas for $40 million. The seller was Petro-Hunt. Glori recently said it would merge with Infinity, which is backed by private equity fund Infinity Group and Hicks Equity Partner.
HOUSTON and TEL AVIV, Israel, March 17, 2014 /PRNewswire/ —
Infinity Cross Border Acquisition Corporation (Nasdaq: INXB) (“Infinity”), a special purpose acquisition company, and Glori Energy Inc. (“Glori”), an energy technology company that deploys its proprietary AEROTM System to significantly increase oil production from mature oil fields, announced today that Glori has completed the previously announced acquisition of producing oil assets in Wood County, Texas from Petro-Hunt LLC (“Petro-Hunt”) for $40 million. Glori and Infinity, which is co-sponsored by Infinity Group and an affiliate of Hicks Equity Partners LLC, recently announced that they will merge in a $185 million transaction.
Highlights of the acquired assets include:
Current net production of approximately 500 barrels of oil equivalent (Boe) per day from 28 wells
Reserves with a production ratio estimated to be 19 years
Estimated net proved reserves of approximately 2.8MMBoe, of which 56% are proved developed producing (PDP) and 44% are proved undeveloped
Proved reserves with an average working interest of 98.6%
Overriding royalty and fee interests which result in high per well net revenue interests
The $40 million purchase price was funded with $24 million in debt facilities, including $2 million in a 6% convertible promissory note issued to Petro-Hunt, which may be converted into common stock of the post merger entity at $8.00 per share subsequent to the consummation of the merger and share exchange agreement between Glori and Infinity, and $16 million from Glori’s cash on hand.
About Glori Energy Inc.
Based in Houston, Texas, Glori Energy Inc. is a technology focused energy company that deploys its proprietary Activated Environment for the Recovery of Oil (AEROTM) System in waterdrive oilfields to increase production. The AERO technology stimulates the native microorganisms that reside in the reservoir to improve the recoverability of trapped oil. Glori provides its AERO System as a service to third party E&P companies, and also uses its technology to increase oil production in fields that it acquires and redevelops in the United States. For more information visit: http://www.GloriEnergy.com.
ABOUT INFINITY CROSS BORDER ACQUISITION CORPORATION
Infinity Cross Border Acquisition Corp. (Nasdaq: INXB) is a blank check company co-sponsored by Infinity Group and Hicks Holdings LLC. Infinity Corp. held its IPO on July 25, 2012 and was established for the purpose of acquiring a growing business via a reverse merger. On January 8, 2014, Infinity and Glori Energy Inc. entered into a merger and share exchange agreement whereby Glori will become a publicly listed company through a merger with Infinity, in a transaction valued at approximately $185 million.
ABOUT INFINITY GROUP
Infinity Group is a cross-border platform and private equity fund known for its strong roots in China. Infinity Group currently manages $800 million. It has 100 portfolio companies and 17 RMB joint venture funds throughout China, making Infinity the owner of more RMB funds than any other foreign PE fund in China. Infinity to date has made 100 deals and 30 successful exits. Sectors of focus include: medical, agricultural, water, energy and high end manufacturing. Infinity is led by managing partners Mr. Amir Gal-Or and Mr. Avishai Silvershatz. For more information, please visit http://www.infinity-equity.com.
ABOUT HICKS EQUITY PARTNERS
Hicks Equity Partners (HEP) is the private equity arm for Hicks Holdings LLC, a holding company for the Thomas O. Hicks family’s assets. With 35 years of private equity experience, Mr. Hicks pioneered the “buy and build” strategy of investing and founded Hicks Muse Tate & Furst, which raised more than $12 billion of private equity across six funds and completed over $50 billion of leveraged acquisitions. HEP looks for established companies with proven track records, strong free cash flow characteristics, a strong competitive industry position and an experienced management team looking to partner with long-term capital.