Earthstone will acquire all of Oak Valley's producing assets, undeveloped acreage, and $138 million in cash and commitments in exchange for 9.1 million shares of the public company.
Oak Valley will own 84% of the combined company.
Earthstone's shares, listed on the NYSE Markets exchange, closed at $21.74 on the trading day before the announcement, suggesting a transaction price of just under $200 million.
Oak
