Texas American Resources, LLC

Energy PE Firm Buys $140M Stake In Texas American Partners

rcrawford — Tue, 18 Dec 2012 16:41:04 +0000

Law360, Houston (December 17, 2012, 8:10 PM ET) — A Houston-based energy investment affiliate of Carlson Capital LP and Bluescape Resources announced Monday that it had acquired a piece of upstream oil and gas company Texas American Partners LLC for $140 million, adding to its North American portfolio.

Parallel Resource Partners LLC, the general partner to a private equity fund focused on making controlled investments in “distress-driven opportunities in the North American upstream oil and gas sector,” will provide a needed cash infusion to Texas American in return for an equity stake in the company.

“Texas American is an excellent fit with Parallel’s portfolio,” Parallel Chairman C. John Wilder said. “This exciting investment immediately recapitalizes Texas American, ensuring the company has the financial flexibility required to compete in the dynamic upstream market.”

Wilder said the deal would give Texas American the scale and support needed to concentrate its attention on developing and augmenting its “deep inventory of high-return drilling opportunities.”

Texas American CEO David Honeycutt said Parallel’s investment strengthens the company’s balance sheet, allowing it to accelerate harvesting from its “high-quality drilling inventory.”

“Our existing inventory has allowed us to provide an immediate return on invested capital and we are excited to expand our position in two top quartile basins where we have concentrated positions and strong historical expertise,” he said.

Founded in 2012, Texas American was created from the reorganization of TARH E&P Holdings LP and the acquisition of Texas American Resources Co. Both entities were founded by industry veteran David Honeycutt and are based in Austin, Texas. Texas American’s oil and gas assets are located throughout Texas.

Debuting in 2011, Parallel is managed by complementary teams from Bluescape and Carlson Capital that have a combined 150 years experience sourcing, evaluating, executing and managing oil and gas investments. The partnership had closed on $160 million as of August 2011 with an eventual target of between $500 and $750 million for making equity control investments in distressed oil and gas companies.

Parallel’s equity commitment of $140 million will enable Texas American’s management team to further capture the value of existing drilling inventory, as well as to continue expansion of the company’s growing presence in South Texas and the Texas Panhandle, the companies said.

Texas American’s current properties include over 50,000 acres of mineral interests in the San Miguel, Austin Chalk, Eagle Ford and Buda formations in Dimmit, LaSalle, Zavala and Frio counties in South Texas. The company also holds approximately 19,000 acres in Hansford, Ochiltree and Lipscomb counties in the Texas Panhandle.

With 21 years of experience and operations in the Texas Panhandle and 10 years of experience in South Texas, Texas American will focus on “bolt-on” acquisitions with significant upside and expanding its acreage footprint in areas adjacent to the company’s current assets, the companies said.

–Editing by Katherine Rautenberg.

LEGAL DISCLOSURE: Certain statements in this news release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly any express or implied statements concerning future financial condition or operating results. Although Management believes that the expectations reflected herein are reasonable, the matters discussed in this release involve risks, uncertainties, and other factors that may delay, prevent or adversely affect the transaction or the Company’s planned activities and operations. There can be no assurance that such expectations will prove correct. All forward-looking statements are expressly qualified by this cautionary statement.
SOURCE: Texas American Partners

Texas American Resources Company Announces Successful Completion of Eagle Ford Wells

rcrawford — Tue, 06 Dec 2011 15:22:31 +0000

AUSTIN, TEXAS – Texas American Resources Company (“TARC” or the “Company”) today announced the successful completion of its first operated Eagle Ford well, the Haug-Kieschnick 33-102H, with a 30-day average initial production rate of 599 Boepd. This well has a lateral length of approximately 4,200’ with 16 frac stages and is located in the oil-window of the Eagle Ford Shale in La Salle County. TARC’s second operated well, the Haug-Krueger 33-104H, was also successfully completed in the fourth quarter and is currently in initial flowback. Additionally, the Company anticipates its third operated Eagle Ford well, the Turman 106H, will be fracture stimulated by year-end.

David Honeycutt, President and CEO of TARC said, “We are pleased with the results of our first two Eagle Ford wells and are poised to see continued improvements on our next wells due to improved service relationships, increased lateral lengths and improving operational efficiencies.”

Texas American Resources Company Announces Divestiture of DJ Basin Properties for $150 Million

rcrawford — Thu, 14 Jul 2011 10:09:24 +0000

AUSTIN, TEXAS — Texas American Resources Company (“TARC” or the “Company”) today announced that its affiliate TARH E&P Holdings, L.P. (“TARH”) has entered into a definitive agreement to sell its Denver-Julesburg (DJ) Basin properties to Bill Barrett Corporation for $150 million. The sale includes the Company’s existing production, proved reserves, and Niobrara oil development opportunities on its approximate 28,000 net acres of leasehold in Weld and Adams Counties, Colorado and Laramie County, Wyoming. The sale is expected to close in August and is subject to customary closing conditions. The Company intends to use the net proceeds from the sale to repay debt and accelerate development on its oily Eagle Ford and Texas Panhandle assets.

David Honeycutt, President and CEO of TARC commented on the sale, “The transactional metrics for the sale of our DJ Basin assets are very compelling; we are delighted with the outcome. The resulting de-leveraging brings our Net Debt/EBITDA ratio to less than 3x. That being said, I expect that Bill Barrett Corporation will have great success throughout the portfolio. Given the outcome for both companies we have a true win-win scenario. We owe a special thanks to Randy King, Bill Anderson, and the entire Bank of America Merrill Lynch team. They worked hard for us and we hold them in high regard. We also had a fine collective effort from our Denver and Austin staffs, I am very proud of the talent we have in our organization. The benefits from our DJ Basin sale will allow Texas American to focus on the development of our very attractive oil-prone Eagle Ford assets in South Texas.”

Texas American Resources Company Announces Results of Its Initial Niobrara Well

rcrawford — Mon, 09 May 2011 10:15:35 +0000

AUSTIN, TEXAS — Texas American Resources Company (“TARC” or the “Company”) today announced that its initial Niobrara well, the Talmadge 44-17H, produced at a peak 24-hour rate of 446 barrels of oil per day. The well, located in Laramie County, Wyoming, was drilled to a total measured depth of 11,498 feet with a lateral length of 4,518 feet and was fracture stimulated with 12 stages.

David Honeycutt, President and CEO of TARC said, “The Talmadge well is a good first start for our company in the burgeoning oil-prone Niobrara play. We are confident that our acreage is absolutely in the right zip code and the upside potential affords us multiple options moving forward. The more you know about the DJ Basin the more you like it.”

Texas American Resources Company Announces Completion of Farmout in the Eagle Ford Shale

rcrawford — Wed, 27 Apr 2011 10:17:12 +0000

AUSTIN, TEXAS — Texas American Resources Company (“TARC” or the “Company”) today announced that its affiliate TARH E&P Holdings. L.P. (“TARH”) has completed a farmout on a portion of its Eagle Ford and Buda acreage in South Texas. This transaction is strategically important as it will allow the Company to develop a portion of its lease acreage that was otherwise subject to continual drilling obligations or primary lease term expirations. If all options in the farmout agreements are exercised, TARH would farmout 50% of its interest in approximately 6,075 leasehold acres prospective for the Eagle Ford and Buda formations. All of the consideration in the transaction is in the form of a drilling carry. The drilling carry will fund the majority of the Company’s 2011 South Texas capital expenditure budget.

David Honeycutt, President and CEO of TARC said, “Texas American is excited about moving forward on our two-pronged oil-prone strategy in the Eagle Ford and Buda formations. The farmout will allow us to de-risk all of our acreage in LaSalle and Frio Counties through drilling carry while continuing to retain operatorship and 50% ownership. This was our goal from the start since we are a long-standing operator in the area.”