HOUSTON, Feb. 1, 2017 /PRNewswire/ -- KLR Energy
Acquisition Corp. ("KLR Energy") (NASDAQ: KLRE, KLREU, KLREW), an
oil and gas exploration and production focused special purpose
acquisition entity, today announced recent well results for Tema
Oil and Gas Company ("Tema"). KLR Energy and Tema, a private
company with assets in the core of the Delaware Basin in Loving County, Texas, entered into a business
combination agreement in December
2016, pursuant to which KLR Energy will acquire equity in a
wholly-owned subsidiary of Tema to be named Rosehill Operating
Company, LLC, to which Tema will contribute certain assets and
liabilities prior to closing. The transaction is subject to certain
closing conditions, including receipt of KLR Energy shareholder
approval. Upon completion of the business combination, KLR Energy
will change its name to Rosehill Resources Inc. ("Rosehill
Resources").
Tema re-initiated its drilling and completion programs within
its core Loving County acreage
within the Delaware Basin in late
2016. Tema recently began production on the first three wells and
has 15 more wells planned for 2017. The first well, completed
mid-November, 2016 in the Lower Wolfcamp A formation, has a 4,306'
lateral length and a peak 24-hour gross production rate of 1,389
barrels of oil equivalent per day ("Boepd"), of which 69% is
oil. The second well, completed December 31, 2016 in the Lower Wolfcamp A
formation, has a 4,612' lateral length and a peak 24-hour gross
production rate of 1,859 Boepd, of which 82% is oil. The third
well was completed over only 2,801' of the lateral length in the
Upper Avalon shale on January 13,
2017. Although this well is still cleaning up, it has
obtained a peak 24-hour gross rate of 866 Boepd, of which 73% is
oil. Based on the well results to date, Tema's January 2017 exit rate was greater than 6,000
Boepd.
As previously announced, Tema's management team will run
Rosehill Resources post-transaction, led by J. A. (Alan)
Townsend, President of Tema, who will serve as Chief Executive
Officer of Rosehill Resources. "We are excited about re-starting
our drilling and completion operations within our core acreage
position in the heart of the play. Our program is off to a great
start with three strong oil wells on line to date," said
Townsend. "In designing this
program, we set out to increase our drilling efficiencies and
improve our hydraulic fracturing techniques, which have delivered
strong initial results. The wells' production rates are exceeding
our pre-drill internal estimates and compare favorably to regional
peers."
Gary Hanna, Chief Executive
Officer of KLR Energy, who will serve as chairman of the board of
directors of Rosehill Resources following the business combination,
commented, "We believe these initial well results demonstrate the
potential of Tema's oil-rich acreage position in the Delaware Basin, and we are excited about the
pending business combination. On that note, we recently filed
our preliminary proxy statement, and are on track to bring this
business combination to shareholder vote in the first half of this
year. Upon completion of our business combination, we believe
Rosehill Resources will emerge with an excellent existing
production base, a strong balance sheet with significant liquidity
and a deep bench of technical, land and operations expertise poised
to deliver growth potential to investors."
About KLR Energy Acquisition Corp.
KLR Energy is a blank check company, also commonly referred to
as a Special Purpose Acquisition Company, or SPAC, formed for the
purpose of entering into a merger, capital stock exchange, asset
acquisition, stock purchase, reorganization or similar business
combination with one or more businesses or entities. KLR Energy is
sponsored by KLR Energy Sponsor, LLC, an affiliate of KLR Group
Holdings, LLC and KLR Group, LLC ("KLR Group").
About Tema Oil and Gas Company
Tema is a rapidly growing, privately held, exploration and
production company with producing assets in Texas and New
Mexico. Current investment activity is focused in the
Permian Basin and other high-potential proven basins. Tema's
strategy for growth is building a portfolio of high-quality acreage
in proven resource play basins to provide a foundation of
predictable production growth. Through active acquisition,
exploitation and exploration across portions of Texas and New
Mexico, the staff at Tema has continued the growth and
success of the company since its formation in 1999. Tema is a
wholly owned subsidiary of Baltimore,
MD-based Rosemore, Inc., founded by descendants of
Louis Blaustein, the 1910 founder of
the American Oil Company.
About KLR Group
KLR Group is a full-service boutique investment bank focused on
the energy industry founded in 2012 and led by Edward Kovalik, Stephen
Lee and Reid
Rubinstein. With offices in Houston and New
York, KLR Group is committed to providing clients access to
a broad range of financial services, advice and solutions typically
available only to the largest public companies. These
solutions include public and private, corporate and
asset-level financings across the capital spectrum, advisory
services, equity research, sales and trading, and merchant banking.
To learn more about KLR Group, please visit www.KLRGroup.com.
Forward-Looking Statements
This communication includes certain statements that may
constitute "forward-looking statements" for purposes of the federal
securities laws. Forward-looking statements include, but are not
limited to, statements that refer to projections, forecasts or
other characterizations of future events or circumstances,
including any underlying assumptions. The words "anticipate,"
"believe," "continue," "could," "estimate," "expect," "intends,"
"may," "might," "plan," "possible," "potential," "predict,"
"project," "should," "would" and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. Forward-looking
statements may include, for example, statements about: KLR Energy's
ability to consummate the business combination; the benefits of the
business combination; the future financial performance of KLR
Energy following the business combination; changes in Tema's
reserves and future operating results; and expansion plans and
opportunities. These forward-looking statements are based on
information available as of the date of this communication, and
current expectations, forecasts and assumptions, and involve a
number of judgments, risks and uncertainties. Accordingly,
forward-looking statements should not be relied upon as
representing KLR Energy's views as of any subsequent date, and KLR
Energy does not undertake any obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities
laws. You should not place undue reliance on these
forward-looking statements. As a result of a number of known and
unknown risks and uncertainties, KLR Energy's actual results or
performance may be materially different from those expressed or
implied by these forward-looking statements. Some factors that
could cause actual results to differ include: (i) the occurrence of
any event, change or other circumstances that could delay the
business combination or give rise to the termination of the
contribution agreement; (ii) the outcome of any legal proceedings
that may be instituted against KLR Energy following announcement of
the proposed business combination and transactions contemplated
thereby; (iii) the inability to complete the business combination
due to the failure to obtain approval of the stockholders of
KLR Energy, or other conditions to closing in the contribution
agreement; (iv) the risk that the proposed business combination
disrupts current plans and operations of KLR Energy or Tema as a
result of the announcement and consummation of the transactions
described herein; (v) KLR Energy's ability to recognize the
anticipated benefits of the business combination, which may be
affected by, among other things, competition and the ability of KLR
Energy to grow and manage growth profitably following the business
combination; (vi) costs related to the business combination; (vii)
changes in applicable laws or regulations; (viii) the possibility
that KLR Energy or Tema may be adversely affected by other
economic, business, and/or competitive factors , including, but not
limited to, future trends in energy markets and commodity prices;
and (ix) other risks and uncertainties described herein, as well as
those risks and uncertainties discussed from time to time in other
reports and other public filings with the Securities and Exchange
Commission (the "SEC") by KLR Energy.
Additional information concerning these and other factors that
may impact our expectations and projections can be found in our
periodic filings with the SEC, including our Annual Report on Form
10-K for the fiscal year ended December 31,
2015, and in the preliminary proxy statement filed by KLR
Energy with the SEC on January 18,
2017. Our SEC filings are available publicly on the SEC's
website at www.sec.gov. KLR Energy and Tema disclaim any obligation
to update the forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be
required under applicable securities laws.
Disclaimer
This communication shall neither constitute an offer to sell or
the solicitation of an offer to buy any securities, nor shall there
be any sale of securities in any jurisdiction in which the offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such
jurisdiction.
Additional Information about the Transaction and Where to
Find It
In connection with the proposed business combination, KLR Energy
has filed a preliminary proxy statement with the SEC on
January 18, 2017, and will mail a
definitive proxy statement and other relevant documents to its
stockholders when they become available. Investors and security
holders of KLR Energy are advised to read the preliminary proxy
statement, and amendments thereto, and, when available, the
definitive proxy statement in connection with KLR Energy's
solicitation of proxies for its stockholders' meeting to be held to
approve the business combination and related transactions because
the preliminary proxy statement contains important information
about the transactions, the parties thereto and risk factors
that may affect investors. The definitive proxy statement will be
mailed to stockholders of KLR Energy as of a record date to be
established for voting on the business combination. Stockholders
will also be able to obtain copies of the proxy statement, without
charge, once available, at the SEC's website at www.sec.gov or by
directing a request to: KLR Energy Acquisition Corp., 811 Main
Street, 18th Floor, Houston, Texas 77002, Attn: Gary C. Hanna.
Participants in Solicitation
KLR Energy, Tema, and their respective directors, executive
officers and other members of their management and employees, under
SEC rules, may be deemed to be participants in the solicitation of
proxies of KLR Energy stockholders in connection with the proposed
business combination. Investors and security holders may obtain
more detailed information regarding the names, affiliations and
interests of certain of KLR Energy's and Tema's respective
executive officers and directors in the solicitation by reading the
preliminary proxy statement in connection with the business
combination which was filed by KLR Energy on January 18, 2017. Information regarding the
persons who may, under SEC rules, be deemed participants in the
solicitation of proxies to KLR Energy's stockholders in connection
with the proposed business combination is set forth in the
preliminary proxy statement for the proposed business combination.
Information concerning the interests of KLR Energy's and Tema's
participants in the solicitation, which may, in some cases, be
different than those of KLR Energy's and Tema's stockholders
generally, is set forth in the preliminary proxy statement relating
to the business combination.
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SOURCE KLR Group, LLC