DJ Basin Divestiture
- TAR exited its operations in the DJ Basin with the recently announced sale to Bill Barrett Corporation (NYSE: BBG) for $150 million
- Sale included all of the Company’s existing production, proved reserves, and Niobrara acreage
- Acreage located in Adams and Weld Counties, Colorado and Laramie County, Wyoming
- ~26,000 net Niobrara acres
- 16,592 MBOE of net proved reserves – 57% liquids
- Additional development reserves of 21,228 MBOE – 86% liquids (primarily Niobrara)
- BofA Merrill Lynch marketed the assets for the Company
- Strong transaction multiples were achieved on the sale
Return on Investment
- TAR realized a return on net investment of over 3x on its DJ Basin sale
- Initially acquired properties in 2004 and 2005 in two separate transactions
- Substantially increased the proved reserves through development drilling
- Opportunistically acquired acreage in the Niobrara during the early stages of the play to add further value
Successful Operations
- Operations generated significant cash flow
- ~2 million BOE of cumulative production since initial acquisition
- Increased reserves substantially since acquisitions
- Proved reserves increased over 60%
- Total reserves increased over 270%
- Drilled 49 wells with a 98% success rate
- 47 in Colorado
- 2 in Wyoming
- Drilling program included a successful 4,700 ft horizontal Niobrara well drilled immediately prior to sales process
Strategic Acreage Acquisitions
- Early mover in the developing Niobrara play allowed Company to establish a meaningful acreage position at an attractive price
- Acquired 13,650 net acres in Colorado and Wyoming prospective for the Niobrara
- Complimented existing producing properties
- ~$5 million acreage acquisition cost equates to an average cost of ~$360/acre
- Permitted 31 horizontal locations primarily on acquired acreage
- Invested additional ~$6 million to drill a Niobrara well that de-risked a significant portion of WY acreage
- Strategic acreage acquisitions and development drilling added an estimated $60 million to sales price
Gulf Coast Divestiture
- In September 2006, TAR exited the majority of its operations in the Gulf Coast with its sale to Foothills Resources Inc. for $62 million
- Goose Creek Field (including Goose Creek East) located in Harris County, Texas
- Cleveland Field located in Liberty County, Texas
- Saratoga Field located in Hardin County, Texas
- TAR realized a return on investment of over 3x on its Gulf Coast sale
