First Reserve Announces Investment in Texas American Resources Company, LLC
GREENWICH, Conn., HOUSTON, LONDON and AUSTIN,
Texas, Dec. 19, 2016 — 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.
For Texas American media inquiries, please contact:
Lee Nix
Chief Financial Officer
512.482.4456
Email: lnix@texasarc.com
David Cape
Vice President, Business Development
512.482.4444
Email: dcape@texasarc.com
For First Reserve media inquiries, please contact:
Jonathan Keehner / Julie Oakes
Joele Frank, Wilkinson Brimmer Katcher
212.355.4449
Email: joakes@joelefrank.com