Baron Energy (Baron), an independent oil and gas company, has finalized its merger with Esconde Resources and Permian Legend Petroleum, two affiliated and privately held Texas corporations (Acquired Entities) effective as of February 22, 2010.
The company said that now it owns production that is 99% oil, both operated and non-operated with working interest ranging from 5% to 98% in oil and gas fields located in Baylor County, Texas and in Borden, Garza, Jones, Runnels, Scurry and Taylor Counties, Texas, in the Permian Basin.
The Acquired Entities’ management team joined Baron. Ronnie Steinocher, formerly president, and manager of predecessor entities of the Acquired Entities, became the president and CEO of Baron and Lisa Hamilton became the executive vice president and CFO. Mr Steinocher and Ms Hamilton also serve as the only two members on the board of directors, and Mr Steinocher will be the chairman.
The company added that its growth strategy will center on making accretive property acquisitions in its core operating area. The company will target properties that have oil production with upside developmental potential.
In addition, the management team will look for ways to exploit Baron’s extensive acreage position in Starr County, Texas by seeking working interest partners for this high potential natural gas project.
The company’s headquarters has moved from Las Vegas, Nevada to Midland, Texas, the center of the Permian Basin of West Texas.
Ronnie Steinocher, president and CEO of Baron said: “The merger of our private companies with Baron Energy is a positive step for both Baron shareholders and the shareholders of the Acquired Entities. It provides Baron with immediate production and revenue as well as significant near-term growth through development drilling and acquisitions in our core area while other shareholders become shareholders in a publicly traded company with tremendous growth potential. Being a part of Baron significantly enhances our ability to raise funds and structure producing property acquisitions.
“Our management team has extensive operating experience in the Permian Basin of West Texas and a pipeline of potential acquisition opportunities within our core area of operations.”