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Forestar Group closes $146M deal for Credo

AUSTIN, Texas (AP) -- Forestar Group Inc., a real estate and natural resources developer, said Friday that it completed its acquisition of Credo Petroleum Corp. for about $146 million in cash, excluding closing costs.

The Austin, Texas-based company said it expects the addition of Denver-based Credo to double its production and reserves and give it significant ownership in strategic oil and gas basins, boosting its earnings in 2013. It said it financed the acquisition with a combination of debt under its senior credit facility and available cash.

Credo is an oil and gas exploration, development and production company based in Denver. It owns leasehold interests in over 125,000 net mineral acres across North Dakota, Kansas, Nebraska and Texas. In addition, the company owns working interests in about 380 producing wells and overriding royalty interests in about 1,200 wells.

Forestar shares fell 32 cents to $16.72 in late trading.