Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Austral Oil, Co., Inc. Deal - Lehman Brothers Collection

Austral Oil, Co., Inc.

Company DealAustral Oil Company Inc.: exchange offer and public offering
Transaction TypeExchange of shares of Austral common stock for oil and gas interests
Deal DescriptionAustral Oil Company, Inc., exchanged with the co-owners of certain oil and gas interests full shares of Austral common stock (stock) for certain oil and gas interests. Oil and gas interests referred to leasehold working interests or other interests in the producing-property interests and in the Rulison property interests. The producing-property interests consisted of interests in 507 wells located in 7 states (primarily in Texas and Louisiana) and in leasehold interests or other rights relating to thereto covering approximately 130,051 gross acres of land in such states. The Rulison property interests consisted of oil and gas leases and operating rights or agreements to acquire such interests covering approximately 66,499 gross acres in the Rulison Field area of Colorado. The number of shares of stock exchanged was contingent on the exchange value of oil and gas interests. It was determined that one share of stock was to be exchanged for each $10 of exchange value. The purpose of the offer of exchange was to convert Austral from a privately owned company acting principally as operating agent for others into a publicly owned producing company with substantial interests in both the producing-property interests and the Rulison Field. Upon successful completion of the exchange, Austral intended to operate as an oil and gas company engaged in drilling and prospecting for and producing oil, gas, and other minerals, operating the properties acquired, and acquiring additional oil, gas, and mineral properties.
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