Newspaper article THE JOURNAL RECORD

Alexander Acquires American Natural

Newspaper article THE JOURNAL RECORD

Alexander Acquires American Natural

Article excerpt

Oklahoma City-based Alexander Energy Corp. has acquired American Natural Energy Corp. of Tulsa in a merger valued at $42.5 million, the company announced Tuesday.

Under the merger agreement, Alexander Energy exchanged 1.62 shares of the company's common stock for each of the 3,824,848 shares of American outstanding on a fully diluted basis, according to Bob G. Alexander, president of Alexander Energy Corp.

With the issuance of the 6.2 million new shares, Alexander Energy has 12.6 million shares of common stock outstanding, the company said.

In addition, Alexander Energy announced the closing of a $29 million credit facility with Liberty Bank and Trust Co. of Oklahoma City NA. Alexander said the new credit facility provides for a $19 million line of credit for acquisition and short-term working capital purposes and a note to assume American's $10 million indebtedness, the company said.

American, which was an independent oil and gas acquisition and exploration company, now becomes a wholly-owned subsidiary of Alexander Energy.

Alexander Energy, a gas and oil acquisition, exploitation, exploration, development and production company, had 46 employees before the merger. The definitive merger agreement was signed April 21.

The company will keep the acquisition office open in Tulsa with four employees _ Michael K. Paulk, former president of American, and Bob Johnson, former acquisitions manager, Alexander said.

"Every employee of (American) who was willing to move to Oklahoma City has been offered employment," he said.

A total of 10 of American's 20 employees will remain with the new company, according to Alexander.

According to Alexander, the merger will almost double the size of Alexander Energy.

"The combination of the two firms will increase Alexander Energy's reserves by 82 percent and almost double its market capitalization to approximately $70 million," Alexander said. "Our goal is to get to $100 million market capitalization, which seems to be the magic number in the investment banking community where you start getting attention of analysts," he said.

Alexander Energy's stock closed at 5, down 3/16.

The new credit facility will enable the company to "aggressively pursue additional acquisition and exploration projects," Alexander said. …

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