Business Context and Reporting Period
This Form 8-K was filed by Halcón Resources Corporation (not Battalion Oil Corp) on May 8, 2012. The report discloses the entry into a material definitive agreement regarding the acquisition of oil and gas assets.
Key Financial Metrics
- Transaction Value: Initial purchase price of approximately $194 million.
- Asset Status: The acquired working interest in oil and gas leases currently has no oil or natural gas production and no proved reserves.
- Financial Performance: The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics for the reporting period.
Material Changes
The primary material change is the execution of a Purchase Agreement to acquire a working interest in oil and gas leases from a private seller. The transaction is subject to customary adjustments and closing conditions.
Outlook and Management Commentary
- Closing Date: The Company expects to close the acquisition in late June 2012.
- Risks and Contingencies: The transaction is subject to customary closing conditions. The filing notes that both parties have made customary representations and warranties.
- Unusual Items: The filing does not disclose any unusual items beyond the pending acquisition.
Investor Verification Checklist
- Verify the final closing date of the acquisition (expected late June 2012).
- Confirm the final purchase price after customary adjustments.
- Review the specific terms of the "customary adjustments" and closing conditions.
- Assess the capital structure impact of the $194 million expenditure on future liquidity.