Tengasco and Riley Exploration Permian entered into a definitive agreement in October 2020 in which Tengasco will issue 203 million shares of common stock to Riley members. Current Riley members will own 95% of Tengasco with Tengasco shareholders holding 5%. Riley's acreage is primarily located on large contiguous blocks in Yoakum County, Texas and Lea, Roosevelt, and Chaves Counties in New Mexico; and the offset legacy assets are located in the Permian Basin San Andres fields, which include the Wasson and Brahaney Fields. Riley has 44,880 net acres with proved, probable, and possible reserves of 54,803; 60,580; and 8,926 million boe, respectively.
At closing, Tengasgo will be renamed Riley Exploration Permian with shares listed on the American (REPX) exchange. Riley's management will become the management of Tengasco with Tengasco's CFO retaining his role. The corporate office will be relocated to Riley's office in Oklahoma City. The company also plans a reverse stock split of 8-to-1 to 12-to-1. The new board will include Bobby Riley, Bryan Lawrence, Philip Riley, Michael Rugen, and an unnamed independent director. ROTH Capital served as an advisor to Tengasco, and Truist Securities advised Riley.