Vine Resources has filed an amended Form S-1 with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). There were no pricing details listed in this filing, but the offering was valued up to $500 million in the previous filing. The company intends to list its stock on the New York Stock Exchange under the symbol VRI.
The underwriters for the offering are Credit Suisse, Morgan Stanley, Barclays, Citigroup, HSBC, Blackstone Capital Markets, Goldman Sachs, Tudor Pickering Holt & Co., Evercore ISI, Jefferies, UBS Investment Bank, Natixis, Societe Generale, Macquarie Capital, and BTIG.
This is a pure play natural gas company focused solely on the development of natural gas properties in the stacked Haynesville and Mid-Bossier shale plays in the Haynesville Basin of Northwest Louisiana. The Haynesville and Mid-Bossier shales are among the highest quality, highest return dry gas resource plays in North America, with approximately 489 Tcf of natural gas in place in the Haynesville play, according to the Oil & Gas Journal.
The Haynesville Basin has reemerged in recent years as a result of material increases in well economics driven by advances in enhanced drilling and completion techniques. This has led to higher recoveries on a per lateral foot basis through more fracking stages and greater proppant usage combined with a steady reduction in well costs. The Mid-Bossier shale overlays the Haynesville shale and, while earlier in its development life cycle than the Haynesville shale, has demonstrated similar characteristics and well results.
Vine issued a forecast for 2017 in the filing:
Our 2017 CapEx forecast is approximately $320 million, which is almost entirely allocated to the development of 44 gross (20 net) operated wells and the development of 30 gross (13 net) non-operated wells utilizing 8 to 9 gross rigs. Additionally, our 2017 CapEx forecast includes six gross refracs on older producing wells to capitalize on our knowledge of our 2015 refrac program and our current completion design to significantly improve sectional production.
The company intends to use the proceeds from this offering to repay its indebtedness, with the remainder going toward working capital and general corporate purposes.
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