GuruTrader
15 years ago
Apollo Successfully Completes Tender Offer for Shares of Parallel Petroleum Corporation and Announces Subsequent Offering Period
Press Release
Source: Parallel Petroleum Corporation and PLLL Acquisition Co. and PLLL Holdings, LLC
On 8:30 am EDT, Friday October 23, 2009
Buzz up! 0 Print.Companies:Parallel Petroleum Corp.
NEW YORK--(BUSINESS WIRE)--Parallel Petroleum Corporation (“Parallel”), PLLL Acquisition Co. and PLLL Holdings, LLC, entities formed for the purpose of acquiring Parallel Petroleum Corporation (NASDAQ: PLLL - News) and wholly owned subsidiaries of an affiliate of Apollo Global Management, LLC, today announced the completion of the tender offer for all of the outstanding shares of common stock of Parallel, including the associated preferred stock purchase rights (collectively, the “Shares”).
Related Quotes
Symbol Price Change
PLLL 3.13 0.00
{"s" : "plll","k" : "c10,l10,p20,t10","o" : "","j" : ""} The initial offering period and withdrawal rights expired at 12:00 midnight, New York City time, on Thursday, October 22, 2009. Computershare Trust Company, N.A., the disbursing agent for the tender offer, has advised that a total of approximately 35,244,824 Shares were validly tendered and not withdrawn (including approximately 802,359 Shares subject to guaranteed delivery) prior to the expiration of the initial offering period, representing approximately 84.62% of the outstanding Shares. In accordance with the terms of the tender offer, PLLL Acquisition Co. accepted for payment all Shares that were validly tendered and not withdrawn prior to the expiration of the tender offer, and payment for such Shares will be made promptly in accordance with the terms of the tender offer.
PLLL Acquisition Co. and PLLL Holdings, LLC announced today that they would make available a subsequent offering period commencing immediately and expiring on Thursday, October 29, 2009 at 5:00 p.m., New York City time for all the Shares not tendered into the offer prior to the initial expiration date. During the subsequent offering period, PLLL Acquisition Co. will accept for payment and promptly pay for the Shares as they are tendered. Stockholders who tender Shares during such period will receive the same $3.15 per Share price, without interest and subject to applicable withholding taxes, that was paid in the tender offer. Procedures for tendering Shares during the subsequent offering period are the same as during the initial offering period with two exceptions: (1) Shares cannot be delivered by the guaranteed delivery procedure and (2) pursuant to Rule 14d-7(a)(2) under the Securities Exchange Act of 1934, as amended, Shares tendered during the subsequent offer period may not be withdrawn.
During the subsequent offer period, Parallel may issue Shares to PLLL Holdings, LLC at a price of $3.15 per Share in accordance with the terms of the merger agreement by and among PLLL Acquisition Co., PLLL Holdings, LLC and Parallel, dated as of September 15, 2009 (as amended, the “Merger Agreement”). These Shares, when added to the number of Shares owned by PLLL Acquisition Co. as a result of the initial offer period and the subsequent offer period, may result in PLLL Acquisition Co. owning more than 90% of the number of shares of Parallel common stock then outstanding. In such case, PLLL Holdings, LLC and Parallel would effect the merger in accordance with the short-form merger provisions of the Delaware General Corporate Law, without prior notice to, or any action by, any Parallel stockholder.
PLLL Acquisition Co. and PLLL Holdings, LLC reserve the right to extend the subsequent offering period in accordance with applicable law and the terms of the Merger Agreement. After expiration of the subsequent offering period, PLLL Acquisition Co. will acquire all of the remaining outstanding Shares by means of a merger under Delaware law. As a result of the purchase of Shares in the tender offer, PLLL Holdings, LLC has sufficient voting power to approve the merger without the affirmative vote of any other Parallel stockholder. In the merger, each Share not previously purchased in the tender offer will be converted, subject to appraisal rights, into the right to receive the same $3.15 per Share price, without interest and subject to applicable withholding taxes, that was paid in the tender offer. After the merger, Parallel will be a wholly owned subsidiary of PLLL Holdings, LLC and Parallel’s common stock will cease to be traded on the NASDAQ Global Select Market.
About Apollo
Apollo is a leading global alternative asset manager with offices in New York, Los Angeles, London, Singapore, Frankfurt and Mumbai. Apollo had assets under management of over $38 billion as of June 30, 2009 in private equity and credit-oriented capital markets funds invested across a core group of industries where Apollo has considerable knowledge and resources.
About Parallel Petroleum Corporation
Parallel Petroleum Corporation is an independent energy company headquartered in Midland, Texas, engaged in the exploitation, development, acquisition and production of oil and gas using 3-D seismic technology and advanced drilling, completion and recovery techniques. Parallel’s primary areas of operation are the Permian Basin of West Texas and New Mexico, North Texas Barnett Shale, Onshore Gulf Coast of South Texas, East Texas and Utah/Colorado. Additional information on Parallel is available via the internet at www.plll.com.
Contact:
Sard Verbinnen & Co.Jonathan Gasthalter, 212-687-8080 212-687-8080orParallel Petroleum CorporationCindy Thomason, 432-684-3727 432-684-3727Manager of Investor Relationscindyt@plll.com
ddabetsmallwinbig
15 years ago
NEWS Parallel Petroleum Announces Additional Oil Hedges
Parallel Petroleum Corporation (NASDAQ:PLLL) today announced that on June 11, 2009, it hedged 621,500 barrels of oil for the calendar years 2011 and 2012. Citibank, N.A. is the counterparty for these derivatives, which are West Texas Intermediate (WTI) costless collars with $70.00 floors and caps ranging from $94.25 to $101.50, as shown in the table below.
Barrels of WTI Oil Prices
Period of Time Oil Floor Cap
Jan 1, 2011 thru Dec 31, 2011 255,500 $ 70.00 $ 94.25
Jan 1, 2012 thru Dec 31, 2012 366,000 $ 70.00 $ 101.50
Total barrels of oil 621,500
Management Comments
Larry C. Oldham, Parallel’s President, commented, “These additional hedges bring our total oil hedges to 1,100 barrels of oil per day for 2011 and 1,000 barrels of oil per day for 2012. Our average daily oil production for the first quarter ended March 31, 2009, was approximately 2,807 barrels of oil per day, which was primarily produced from our long-life Permian Basin oil properties.”
The Company
Parallel Petroleum is an independent energy company headquartered in Midland, Texas, engaged in the exploitation, development, acquisition and production of oil and gas using 3-D seismic technology and advanced drilling, completion and recovery techniques. Parallel’s primary areas of operation are the Permian Basin of West Texas and New Mexico, North Texas Barnett Shale, Onshore Gulf Coast of South Texas, East Texas and Utah/Colorado. Additional information on Parallel is available via the internet at www.plll.com.
http://ih.advfn.com/p.php?pid=nmona&cb=1246057628&article=38244792&symbol=N%5EPLLL
Atlas180
15 years ago
Credit Crunch Will Lead to Oil Shock: Consultant
ENERGY, NORTH AMERICA, MIDDLE EAST, OIL, RECESSION, ARAMCO, IEA, INTERNATIONAL ENERGY AGENCY, OPEC
Reuters | 26 Mar 2009 | 07:13 AM ET
The global financial crisis and collapse in the oil market have stalled vital investment in oil exploration and production and are likely soon to lead to a sharp spike in prices, an energy consultant and financier says.
Matt Simmons, founder of Houston-based investment bank Simmons & Co, argues the underlying rate of decline of the world's ageing oilfields is as much as 20 percent a year and only high levels of investment can reduce that to single digits.
With credit tight and oil prices almost $100 a barrel below their highs last year, oil companies are unable to sustain previous levels of spending and the result is falling production, he said in an interview on Thursday.
"We are three, six, maybe nine months away from a price shock. We are not talking about three to five years away -- it will be much sooner," Simmons told Reuters in London.
"These prices now are dangerously low. The lower prices fall, the less oil will be produced and the greater the chance of an oil spike," he said.
Oil prices hit record highs of almost $150 per barrel last July but have tumbled since then as the global economic downturn has cut energy consumption by consumers and companies alike.
Prices have rallied from lows below $35 a barrel in December to above $50 but remain well below what many oil companies and producing countries say they need to invest in new production.
Simmons is a proponent of the "peak oil" theory, and has argued for years that world oil output is in irreversible decline because oil industry infrastructure is getting too old.
He says the cost of rebuilding the oil industry is colossal: "The industry's asset base is beyond its original design life."
Twilight in the Desert
Simmons' 2005 best-seller "Twilight in the Desert, The Coming Saudi Oil Shock and the World Economy," argued oil output from the Middle East's biggest supplier was reaching an apex and would soon decline, ending forever the era of cheap oil.
Saudi Arabian oil company Aramco and many other analysts strongly disagreed with that thesis, saying Simmons exaggerated the rate of decline of older oilfields.
Cambridge Energy Research Associates last year put the rate of decline of the world's oilfields at just 4-5 percent a year.
But Simmons' concerns over the impact of the credit crisis and the dramatic fall in oil prices are shared by many other, more conservative bodies, including the International Energy Agency (IEA), which advises 28 industrialized nations.
IEA Deputy Executive Director Richard Jones warned the oil market this week that so far as much as 2 million barrels per day (bpd) of new upstream capacity due to come on stream had been deferred for now due to lack of funds and low oil prices.
The IEA is also worried recent cuts in oil production by the Organization of the Petroleum Exporting Countries in an attempt to bolster prices have left oil inventories dangerously low, leaving little room for maneuver when oil demand recovers.
Simmons says many OPEC oil producers will find it difficult to bring output back to previous levels once prices recover.
"When you have an old oilfield whose flow is being maintained by extremely high levels of investment and you reduce production, you rarely if ever get back to where it was."
Slideshow: Which Oil Nations Make Money?
Because of this and natural declines in output, oil use may not need to rise much before production fails to meet demand.
"Unless oil demand falls by 10 or 15 percent per annum, which it is not going to do, then we don't need to wait for oil demand to come back before we have a supply crunch," he said.
"Within a few months, we are going to realize our visible inventories are really tight -- squeaky tight -- and what would really be inconvenient is to see a recovery in the economy."
Copyright 2009 Reuters. Click for restrictions.
URL: http://www.cnbc.com/id/29891917/
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