Stone Energy to acquire Bois d'Arc Energy

Stone Energy is set to acquire Bois d'Arc Energy.

Offshore staff

LONDON -- Stone Energy is set to acquire Bois d'Arc Energy. Under the terms of the merger agreement, Bois d'Arc stockholders will receive $13.65 in cash and 0.165 shares of Stone common stock for each share of Bois d'Arc common stock. The transaction has an aggregate value of approximately $1.8 billion.

Following the merger, Stone expects to produce over 300 MMcfe/d and have over 700 bcfe of estimated proved reserves and approximately 275 bcfe of estimated probable reserves, with a multi-year exploration prospect inventory, extensive 3D seismic coverage over the Gulf of Mexico, and a material leasehold position of over 800,000 net undeveloped acres.

The transaction is expected to close in 3Q 2008. Following the closing, Stone will remain headquartered in Lafayette, Louisiana, and David Welch will continue as CEO of the combined company.

"Bois d'Arc is an outstanding fit with Stone given the complementary asset bases, strategies and skill sets of the two companies," says David Welch, CEO of Stone. "Stone is a strong exploitation and development company and combined with Bois d'Arc's outstanding inventory of shelf exploration prospects, the combined company will be a leading Gulf of Mexico producer. The transaction will be accretive to Stone on a 2008 cash flow basis and the combined entity is expected to generate significant free cash flow which will continue to strengthen its balance sheet."


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