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Lonestar Resources Closes Eagle Ford Shale Acquisitions for USD 110.6m 
Monday 19 June 2017

19 June 2017 - Texas, US-based Lonestar Resources US Inc. (NASDAQ: LONE) has closed acquisitions in the Eagle Ford Shale, in Karnes, Gonzales, DeWitt, Lavaca and Fayette Counties, the company said.

The acquisition consisted of approximately 30,219 gross / 21,238 net acres with proved reserves of approximately 31.4m barrels of oil equivalent, as estimated by Lonestar, as of 31 December 2016.

After purchase price adjustments associated with net cash flows from 1 January 2017 (the effective date of a portion of the transaction), Lonestar paid approximately USD 110.6m to close the transaction, consisting of USD 99m in cash and approximately 2.7m shares of its class B convertible preferred stock.

This class B convertible preferred stock will be automatically converted to Lonestar's class A common stock upon the consummation of the stockholder vote in respect of its previously announced series A convertible preferred stock.

There are no dividends or voting rights associated with the class B convertible preferred stock.

The cash portion of the purchase price for the acquisitions consisted of USD 78m, financed by the issuance of 5,400 shares of Lonestar's series A-1 convertible preferred stock and 74,600 shares of its series A-2 convertible preferred stock to Chambers Energy Capital, with the remaining portion drawn from its recently expanded Senior Secured Credit Facility.

Lonestar's Senior Secured Facility was expanded from USD 112m to USD 160m after closing these acquisitions.

In addition, Lonestar has reached agreements to repurchase or redeem the remaining USD 17m of second lien notes by 30 June 2017.
Date Published: 19/06/2017
Target: Eagle Ford Shale, in,  Karnes, Gonzales, DeWitt, Lavaca and Fayette Counties
Country: USA
Deal Size: 110.6m (USD)
Sector: Petroleum/Natural Gas/Coal
Type: Corporate acquisition
Financing: Cash and Stock
Status: Closed
Buyer: Lonestar Resources US