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 repaydebt, flow back equity to its partners and accelerate developmenton its oily Texas Panhandleassets

The sale includes the Company's existing production, provedreserves and Eagle Ford and Austin Chalk oil development opportunities onits approximate 55,000 net acres of leasehold in Dimmit, Frio,La Salle and Zavala Counties in Texas. Following thesale, TAR owns and operates over 100 producing wells in theTexas Panhandle with netproduction of approximately 2,400 BOEPD that is 85% oil andNGLs.

“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 andseller. There are many remaining opportunities in our legacySouth Texas portfolio and ourbuyer sees and embraces the upside the assets offer. We want toinclude a special thanks to our friends at Evercore”—which marketedthe South Texas portfolio on TAR's behalf—“for running a highlyprofessional process on our behalf. Lastly, we executed well as ateam and the results from the sale speak to that fact.”