AUSTIN TX—Texas American Resources has sold its South Texas oil property portfolio to an undisclosed buyer for $135 million. The says it plans to use the net proceeds from the sale to repay debt, flow back equity to its partners and accelerate development on its oily Texas Panhandle assets
The sale includes the Company's existing production, proved reserves and Eagle Ford and Austin Chalk oil development opportunities on its approximate 55,000 net acres of leasehold in Dimmit, Frio, La Salle and Zavala Counties in Texas. Following the sale, TAR owns and operates over 100 producing wells in the Texas Panhandle with net production of approximately 2,400 BOEPD that is 85% oil and NGLs.
“We are pleased with our outcome in South Texas,” says David Honeycutt, the company's founder, president and CEO, who calls the sale “accretive to both buyer and seller. There are many remaining opportunities in our legacy South Texas portfolio and our buyer sees and embraces the upside the assets offer. We want to include a special thanks to our friends at Evercore”—which marketed the South Texas portfolio on TAR's behalf—“for running a highly professional process on our behalf. Lastly, we executed well as a team and the results from the sale speak to that fact.”
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