Western Energy Resources Inc., a Mission Viejo-based oil and gas firm, has signed a definitive agreement to acquire all of the assets of Petro Energy Management Corp. of Thousand Oaks for 3.75 million shares of Western Energy stock valued at $1.125 million.
Petro Energy has interests in 13 oil and gas wells located on 1,378 acres in Texas, Kansas and Pennsylvania. Western Energy owns interests in 38 producing wells on 11,640 acres in Kansas, Oklahoma and Texas and has leasehold interests in Mississippi and Florida. The company also holds offshore interests in Australia, India and the Philippines.
The combined proved producing reserves of Western Energy and Petro Energy will be 297,000 barrels of oil and 1,653,000 thousand cubic feet of gas, the company said.
"With this acquisition, Western's monthly production will move up to 2,670 barrels of oil and 11,480 thousand cubic feet of gas," Western Energy President Richard Johnson said.
The acquisition of Petro Energy's assets is contingent upon a vote of its shareholders and approval by regulatory agencies.