Breitling Energy Corporation (OTCBB: BECC) has been named as a 2014 Deal
of the Year by Acquisition International for its merger with Bering
Exploration Inc. After 18 months of intense negotiations, the two
companies entered into an Asset Purchase Agreement where Bering issued
461.9 million shares of stock to Breitling in exchange for all of the
oil and gas working interests of the former Breitling Oil and Gas. In
completion of the reverse merger, the Bering board resigned and was
replaced with the Breitling board; similarly the Bering management team
resigned and was replaced with the Breitling management team. The
headquarters was relocated to Dallas, Texas. The new company emerged as
Breitling Energy Corporation, trading under the stock symbol BECC on the
over the counter bulletin board exchange.
“This saved our shareholders a substantial mount of money compared to
the conventional public underwriting process. We knew of Bering and knew
they no longer wanted to continue as a public company, and we wanted
access to capital markets, so this deal was a natural fit,” said Chris
Faulkner, Breitling Energy’s CEO and chief architect of the merger.
“This would be far more difficult to orchestrate in today’s oil price
environment. One of the biggest hurdles was ascribing proper valuation
to our hundreds of working interests. Timing is everything because
today’s prices probably wouldn’t facilitate such a deal,” Faulkner added.
The merger allowed Breitling to capitalize its assets, converting the
company from exclusively non-operating interests to growth through the
drill bit, increasing its PV10 valuation and to use its currency to
acquire additional acreage and pursue other valuations.
“These are challenging times and I built my career on good challenges,”
Faulkner said. “We have a solid plan for the future, and we are
carefully adjusting and executing according to these times. I’m very
optimistic for the future of Breitling Energy and proud to have been
recognized for this strategic merger.”
ABOUT BREITLING ENERGY CORPORATION
Breitling Energy Corporation is a growing U.S. energy company based in
Dallas, Texas engaged in the exploration and development of
high-probability, lower risk onshore oil and gas properties. The
Company’s dual-focused growth strategy primarily relies on leveraging
management’s technical and operations expertise to grow through the
drill-bit, while also growing its base of non-operating working
interests and royalty interests. Breitling Energy's oil and gas
operations are focused primarily in the Permian Basin of Texas and the
Mississippi oil window of southern Kansas and Northern Oklahoma, with
non-operating investments in Texas, North Dakota, Oklahoma and
Mississippi. Breitling Energy Corporation is traded over the counter
under the ticker symbol: BECC. Additional information is available at www.breitlingenergy.com.
Copyright Business Wire 2015
Source: Business Wire
(January 27, 2015 - 9:12 AM EST)
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