In latest developments to the SilverBow saga, SilverBow Resources’ board of directors sent out a scathing letter to its shareholders on March 28 to “set the record straight on false claims made by Kimmeridge.”  

The letter addresses Kimmeridge Energy Management’s latest bid for a SilverBow takeover and urges shareholders to vote against Kimmeridge’s proposals in the company’s upcoming 2024 annual meeting of shareholders. The E&P investment firm had proposed a merger in early March of its south Texas gas assets, Kimmeridge Texas Gas (KTG), with SilverBow in exchange for 32.4 million SilverBow shares at $34 per share. 

Other SilverBow shareholders have expressed support for the Kimmeridge offer.

Kimmeridge had also asked to nominate three seats and to remove Leland T. Jourdan from SilverBow’s board, who was appointed on March 27 following Christoph O. Majeske’s resignation after the shareholder Strategic Value Partners’ sell down.

The March 28 letter to SilverBow shareholders said Kimmeridge’s offer “substantially undervalues SilverBow” and that KTG’s assets are “overstated in a manner that would advantage Kimmeridge in a combination at the expense of our other shareholders.”

Kimmeridge has not made public the relevant information to independently evaluate KTG’s assets, SilverBow said. “SilverBow has been and continues to be open to exploring a transaction at an appropriate valuation.”

SilverBow’s letter also alleged that Kimmeridge has plans to take control of its board by 2025 through successive proxy fights to eventually force a merger between KTG and SilverBow.

“Kimmeridge is making these proposals to further its own agenda to ultimately gain control of the company, without a control premium paid to all shareholders,” SilverBow said.  

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