In April, the boards of directors for both companies announced they had entered into a definitive agreement for Chesapeake to acquire Bronco for about $315 million. That amount included debt, networking capital and outstanding warrants.  

When the agreement was first announced, Chesapeake officials planned to make a cash tender offer of $11 per share for Bronco’s outstanding shares of common stock. It reported that amount was a premium of 6 percent, and 24 percent over Bronco’s closing price on Nasdaq on April 14, the day the definitive agreement was signed.

Chesapeake plans to own approximately two-thirds of the rigs it operates in its drilling program. Bronco has 22 high quality drilling rigs that Chesapeake plans to integrate into its wholly-owned subsidiary, Nomac Drilling LLC. Nomac has 95 drilling rigs, 90 of which are under contract to Chesapeake.

With 160 drilling rigs operated by Chesapeake, it plans to have about 200 by the end of 2012, and believes the Bronco acquisition should satisfy its anticipated rig investment needs through next year.

Officials with both companies expect the deal to close in the second quarter of this year.