TEXEGY Leases Austin Chalk Acreage to Equinor
Published: Sept 24, 2018 8:00 a.m. ET
TEXEGY LLC (“TEXEGY”) announced today it has completed a transaction whereby it has entered into definitive agreements to lease a portion of its Austin Chalk minerals to Equinor Louisiana Properties LLC (“Equinor”), a subsidiary of Equinor ASA, formerly known as Statoil ASA, a multinational energy company headquartered in Stavanger, Norway. As part of this leasehold transaction, Equinor is now the operator of a substantial portion of TEXEGY’s Austin Chalk assets in the Burr Ferry field predominately located in Vernon Parish, Louisiana. Prior to this transaction, TEXEGY owned a majority of its Austin Chalk interests at 100% W.I. and 100% N.R.I.
TEXEGY was formed in late 2014 and has focused its efforts on acquiring and developing assets in Texas and Louisiana, which total over 100,000 acres. Burr Ferry and South Bearhead Creek fields in Vernon and Beauregard parishes, respectively, comprise the majority of the company’s Louisiana properties. AWP and Raccoon Bend fields in McMullen and Austin counties, respectively, make up the majority the company’s Texas properties.
“We could not be happier about this partnership,” said Sherif Wadood, Co-Founder of TEXEGY. “Everyone in the industry is familiar with Equinor and their technical and commercial expertise. This asset is unique—not only is it a part of the well-proven Brookland field, but it also has wells that have produced in excess of one million barrels of oil equivalent per well without the advantage of modern completions. We look forward to working together with Equinor to not only maximize the value of their leasehold interests but also our retained royalty interest.”
Rajan Ahuja, TEXEGY’s CEO and Co-Founder, said, “We are very excited for this partnership from both a technical and commercial perspective. Equinor has committed to shoot seismic and run geological/petrophysical analyses with the expectation of a long-term development plan on our land. The area has already attracted a variety of operator classes from large-cap public companies to small private equity backed teams, all of which are impressed by the same attractive attributes—significant proven reserves in place that have yet to be exploited via modern drilling and completion techniques.”
Michael Pedrotti, President and Co-Founder of TEXEGY said, “Over the course of 30 years, I have worked on all sorts of different deals, structures, acquisitions, and divestitures. Working with Equinor and closing this transaction ranks among the smoothest and most professional of them all. Equinor’s team, as well as our team here at TEXEGY, exhibited the highest levels of transparency, diligence, competence, and efficiency.”
Houlihan Lokey acted as financial advisor to TEXEGY, and Branscomb PC acted as legal counsel to TEXEGY for the transaction.
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TEXEGY Announces Operating Assets Divesture to Fortify Energy
May 05, 2022, 09:00 ET
HOUSTON, May 5, 2022 /PRNewswire/ -- TEXEGY LLC ("TEXEGY"), a Texas-based oil and gas venture, and Chato Energy LLC ("Chato"), an affiliate of Fortify Energy ("Fortify"), today announced the closing of a transaction whereby TEXEGY has sold to Chato all of its leasehold in the South Bearhead Creek ("SBC"), Raccoon Bend and AWP fields, as well as a non- operating interest in the South Burr Ferry field for an undisclosed amount.
Following the transaction, TEXEGY has retained an 18-month exclusive farmout over SBC. The transaction is in line with its strategy to focus on its the upside potential of the undeveloped proven reserves in SBC. TEXEGY Royalty LLC ("TEXEGY Royalty") holds full mineral ownership over approximately 80,000 acres, 50,000 of which are contiguous unleased acres in the Austin Chalk.
"We view Chato as a great fit for our divested assets and look forward to partnering with them on the SBC farm-out. Through this transaction, we can sharpen our focus on exploiting our substantial mineral position in Austin Chalk of over 50,000 unleased contiguous acres, utilizing technical studies including fully processed 3D seismic that was shot recently over the entire footprint. Such a unique and a serious position in the Austin Chalk deserves our full attention," said Sherif Wadood, Co-Founder of TEXEGY group.
The TEXEGY assets add meaningful production and cash flow to Fortify's existing portfolio of conventional, low decline assets, while also providing exposure to high quality, low risk recompletion opportunities and additional upside via the South Bearhead Creek farmout agreement." The acquisition of the TEXEGY assets fits well into Fortify's strategy of acquiring low risk producing properties, and their proximity to our existing operations along the Gulf Coast provide the opportunity for further operational efficiencies. Fortify is creating value via accretive acquisitions, current production optimization and exposure to high-quality, low-risk recompletion opportunities. We look forward to continuing this growth strategy with the acquisition of the TEXEGY assets," said Tony Schnur, CEO of Fortify Energy.
Energy Advisors Group served as exclusive financial advisor to TEXEGY, and Branscomb PLLC acted as legal counsel to TEXEGY for the transaction.
Seaport Global Securities served as financial advisor to Fortify, and R. Reese & Associates, PLLC acted as legal counsel to Fortify for the transaction.
TEXEGY was formed in late 2014 and has made a series of acquisitions of leaseholds across Texas and Louisiana. TEXEGY Royalty LLC owns full mineral rights of over 80,000 acres in the Austin Chalk.
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About Chato Energy
Chato Energy was formed in 2020 as an affiliated entity of Arena Investors managed by Fortify Energy. Fortify is a private oil & gas merchant company acquiring and managing assets across Texas, Louisiana, Utah and Colorado with a focus on low risk producing properties. Arena Investors, LP is an institutional asset manager founded in partnership with The Westaim Corporation (TSXV: WED). With $3.4 billion of committed assets under management as of March 1, 2022, and a team of over 100 employees in offices globally, Arena provides creative solutions for those seeking capital in special situations.