The company will buy these properties across the Permian Basin, Eagle Ford shale formation and the Eagle Bine in Texas, the Williston Basin in North Dakota, the Niobrara shale formation in Wyoming and Nebraska, and the Mississippian shale formation in Oklahoma.
According to the company, the transaction will also include about 300 barrels of oil equivalent per day on existing held by production acreage included in the acquisition.
The acquisition is expected to be completed by the end of 2011, subject to customary due diligence and the execution of definitive agreements.
American Standard plans to fund the acquisition with the issuance of shares of the company’s common stock, a promissory note, and minimal cash at closing.
