In latest developments to the SilverBow saga, SilverBow Resources’ board of directors sent out a scathing letter to its shareholders on March 28 to “set the record straight on false claims made by Kimmeridge.”
The letter addresses Kimmeridge Energy Management’s latest bid for a SilverBow takeover and urges shareholders to vote against Kimmeridge’s proposals in the company’s upcoming 2024 annual meeting of shareholders. The E&P investment firm had proposed a merger in early March of its south Texas gas assets, Kimmeridge Texas Gas (KTG), with SilverBow in exchange for 32.4 million SilverBow shares at $34 per share.
Other SilverBow shareholders have expressed support for the Kimmeridge offer.
Kimmeridge had also asked to nominate three seats and to remove Leland T. Jourdan from SilverBow’s board, who was appointed on March 27 following Christoph O. Majeske’s resignation after the shareholder Strategic Value Partners’ sell down.
The March 28 letter to SilverBow shareholders said Kimmeridge’s offer “substantially undervalues SilverBow” and that KTG’s assets are “overstated in a manner that would advantage Kimmeridge in a combination at the expense of our other shareholders.”
Kimmeridge has not made public the relevant information to independently evaluate KTG’s assets, SilverBow said. “SilverBow has been and continues to be open to exploring a transaction at an appropriate valuation.”
SilverBow’s letter also alleged that Kimmeridge has plans to take control of its board by 2025 through successive proxy fights to eventually force a merger between KTG and SilverBow.
“Kimmeridge is making these proposals to further its own agenda to ultimately gain control of the company, without a control premium paid to all shareholders,” SilverBow said.
Recommended Reading
Exclusive: Silixa’s Distributed Fiber Optics Solutions for E&Ps
2024-03-19 - Todd Chuckry, business development manager for Silixa, highlights the company's DScover and Carina platforms to help oil and gas operators fully understand their fiber optics treatments from start to finish in this Hart Energy Exclusive.
CERAWeek: AI, Energy Industry Meet at Scary but Exciting Crossroads
2024-03-19 - From optimizing assets to enabling interoperability, digital technology works best through collaboration.
Cyber-informed Engineering Can Fortify OT Security
2024-03-12 - Ransomware is still a top threat in cybersecurity even as hacktivist attacks trend up, and the oil and gas sector must address both to maintain operational security.
Forum Energy Signs MOU to Develop Electric ROV Thrusters
2024-03-13 - The electric thrusters for ROV systems will undergo extensive tests by Forum Energy Technologies and SAFEEN Survey & Subsea Services.
Axis Energy Deploys Fully Electric Well Service Rig
2024-03-13 - Axis Energy Services’ EPIC RIG has the ability to run on grid power for reduced emissions and increased fuel flexibility.