This business combination, to be effected through the issuance of common shares of Doral Energy, will result in an effective change of control with current stakeholders of Pure Gas owning 80% of the combined entity post-transaction.
Pure Gas is a limited partnership with interests in approximately 600,000 gross acres located within the state of New Mexico, and net acreage consists of approximately 300,000 acres with approximately 30,000 acres located within the Permian Basin of southeastern New Mexico.
Pure Gas owns varying operated and non-operated working interests, ranging from 1% – 50%, in approximately 75 gross wells located within Eddy, Lea and Chaves counties in New Mexico, with net current production of approximately 230boepd.
As part of this business combination, Doral will, among other things, conduct a reverse stock split and name change.
