First Reserve has provided up to $250 million to Texas American Resources Company LLC. The capital will be used to back Texas American’s pursuit of oil development opportunities in the Eagle Ford Shale in south Texas.
GREENWICH, Conn., HOUSTON, LONDON and AUSTIN, Texas, Dec. 19, 2016 /PRNewswire/ — Texas American Resources Company, LLC (“Texas American” or the “Company”) announced today that First Reserve, a leading global private equity and infrastructure investment firm exclusively focused on energy, and members of management have made an investment in the Company. First Reserve has committed up to $250 million in private equity capital to Texas American to support the Company’s pursuit of oil development opportunities in the Eagle Ford Shale in South Texas.
Founded in 1991, Texas American has a long history of successful oil and natural gas exploration and production operations. Concurrent with the closing of First Reserve’s investment, the Company acquired an initial leasehold position in the black oil window of the Eagle Ford trend in Atascosa County, Texas, covering approximately 12,000 acres. The Company plans for development drilling to begin in the first quarter of 2017.
David Honeycutt, CEO of Texas American, commented, “We are excited to have the support and confidence of First Reserve, and we are delighted to be their partner. With their support, we believe we have a unique opportunity and are looking forward to executing our business plan. We are also excited that we have closed the first of our targeted leasehold acquisitions and to be in a position to begin our development drilling program so quickly.”
Michael France, Managing Director of First Reserve, added, “First Reserve believes that David and his team have the experience needed to develop what is, in our view, an underdeveloped and highly attractive package of assets. Further, we anticipate this partnership will serve as the strong foundation to build an exciting platform in the Eagle Ford trend and look forward to an ongoing collaboration.”
About Texas American Resources
Texas American has operated continuously in Texas since 1991 and has been active in South Texas since 2003. With First Reserve, the Company plans to acquire and develop a portfolio of properties that combines existing production with significant remaining undrilled locations. For more information, please visit www.texasarc.com.
About First Reserve
First Reserve is a leading global private equity and infrastructure investment firm exclusively focused on energy. With over 30 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised approximately USD $31 billion of aggregate capital since inception. Putting these to work, First Reserve has completed approximately 600 transactions (including platform investments and add-on acquisitions), creating several notable energy companies throughout the Firm’s history. Its portfolio companies operate on six continents, spanning the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure. For more information, please visit www.firstreserve.com.