An Oil & Gas IPO To Watch: Dynamic Offshore Resources (DOR)

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Dynamic Offshore Resources Inc. is going to be an interesting IPO to watch.  The company is a private oil and gas company that has received financial backing from Carlyle Group and Riverstone Holdings.  The company has recently filed to raise up to $400 million by the sale of common shares.  No financial terms of the number of shares nor the price range are present yet, but it plans to list on the New York Stock Exchange under the symbol “DOR.”

The underwriting syndicate has been set with underwriters as Citigroup, Credit Suisse, Deutsche Bank, Tudor Pickering Holt & Co, and UBS.

The company has grown largely due to its acquisition history.  Its operations are as an independent exploration and production company focused on the acquisition and development of producing oil and natural gas properties in the Gulf of Mexico.

It commenced operations in 2008 and its management team has an average of more than 28 years of energy industry experience.  As of March 31, 2011, its estimated net proved reserves were 45,223 MBoe, of which 52% was oil and 84% was proved developed, with an associated PV-10 of approximately $1.2 billion, based on Securities and Exchange Commission pricing of $80.04 per Bbl for oil and $4.10 per MMBtu for natural gas.

Also as of March 31, 2011, its estimated net probable reserves were 8,782 MBoe with an associated PV-10 of approximately $237.5 million. During June 2011, the company’s properties had aggregate average net daily production of 17,634 Boe per day. As of March 31, 2011, it had interests in approximately 200 net productive wells and over 200 offshore oil and gas leases in federal and state waters of the Gulf of Mexico,.  That comes to approximately 661,000 gross and 317,000 net acres.

The company’s properties are predominantly located in water depths of less than 300 feet and it owns a 49% interest in and operate the deepwater Bullwinkle field and associated platform, located in approximately 1,350 feet of water.

Since inception, its principal equity owners have invested approximately $225 million and have received approximately $83 million in aggregate distributions from cash flows, for a net investment of $142 million.  It has also incurred a total of $340 million in debt, with $175 million of debt outstanding as of June 30, 2011.  After the acquisitions, the PV-10 of its proved oil and natural gas reserves totaled approximately $1.2 billion as of March 31, 2011.

The full SEC Filing is here.

JON C. OGG