Roan Resources forms transaction committee
Roan Resources, Inc. (NYSE: ROAN) said it has received multiple unsolicited indications of interest to purchase the company.
Roan reports it has an 150,000-acre position with an estimated resource potential of more than 2 billion Boe and multiple zones. Roan is focused on developing unconventional oil and natural gas reserves in the Merge, SCOOP and STACK plays of the Anadarko Basin in Oklahoma.
In addition, Roan has also received indications of interest for in-basin consolidation opportunities. In response to these unsolicited indications of interests, the company has formed a transactional working committee of its board to evaluate a potential sale or merger.
The committee is considering all potential merger and acquisition opportunities to act in the best interest of all its shareholders. In order to assist the committee in evaluating any potential sale or merger of the company, Roan said it will mandate an investment bank in the near future.
In the meantime, Roan said it was committed to maintain maximum value on a stand-alone basis and to obtaining operational excellence across its premier asset base in the core of the Anadarko Basin. Roan is positioned in the basin to have the flexibility to achieve optimal scale by growing its asset base organically or through value maximizing strategic alternatives.
Joseph A. Mills, Roan’s Executive Chairman of the Board said, “We are focused on executing and delivering on our strategic objectives in the near and medium term. We will consider all potential consolidation opportunities as well as the inbound expressions of interest to purchase the company. We believe consolidation in the core of the basin through a sale or merger combination could be value enhancing on many levels and could provide a more expeditious path to maximizing long term shareholder value.”
No timetable has been said, the company said in a press release.
