US onshore oil firm EnerJex has entered into merger talks with Colorado production company Black Raven Energy.
The deal, which will see Black Raven owners West Coast Opportunity Fund, who already own a 16% stake in EnerJex, holding around 46% of the new company.
The new company would be focused on oil and gas exploration and production, with a large stake in the Denver Julesburg basin.
“Black Raven’s team will compliment EnerJex’s team and add a significant amount of depth and talent in areas that do not overlap between the two companies,” said EnerJex chief executive Robert Watson.
“I strongly believe this transaction will enable EnerJex to accelerate growth and increase per-share value while exposing our shareholders to a substantial amount of upside potential.”