Fortune Petroleum to Buy Stakes in Texas Wells

Fortune Petroleum Corp., an Agoura Hills-based oil and gas producer, said it agreed to buy stakes in nine producing natural gas wells in Webb County, Tex.

Separately, Fortune declared a one-for-four reverse stock split and plans to sell 1.35 million equity units to finance the acquisition.

The units will consist of one share of Fortune’s common stock and a warrant to purchase a second common share.

Fortune agreed to acquire the leasehold interests in the wells on two natural gas properties from Michael Petroleum Corp., Brazos Resources Inc., Pioneer Drilling Co. and Endowment Energy Partners L.P.

The price was not disclosed.

The acquisition is subject to “significant” conditions, including Fortune’s ability to obtain the necessary equity financing.

The reverse stock split, which was effective Wednesday, is designed to facilitate that financing, Fortune said.

Shareholders approved the reverse split at a special meeting in March.

Fortune has 819,200 shares outstanding after the split.