AUSTIN, Texas, Aug. 13, 2014 /PRNewswire/ -- Texas American Resources, LLC ("TAR" or the "Company") announced today that it has closed on the sale of its South Texas properties to an undisclosed buyer for $135 million. 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, Texas. The Company intends 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.
David Honeycutt, President and CEO of TAR commented on the sale, "We are pleased with our outcome in South Texas. The sale is accretive to both the 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 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."
ABOUT TEXAS AMERICAN RESOURCES, LLC
Texas American Resources, LLC is a privately held, independent energy company headquartered in Austin, Texas that is majority owned by funds managed by Parallel Resource Partners, LLC. The Company was founded in 1990 by President and CEO, David E. Honeycutt, and owns and operates in the Texas Panhandle. TAR is an oil-focused company that is enjoying rapid growth through technology-driven organic development. Post its South Texas asset 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.
LEGAL DISCLOSURE: Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly any express or implied statements concerning future financial condition or operating results. Although Management believes that the expectations reflected herein are reasonable, the matters discussed in this release involve risks, uncertainties, and other factors that may delay, prevent or adversely affect the transaction or the Company's planned activities and operations. There can be no assurance that such expectations will prove correct. All forward-looking statements are expressly qualified by this cautionary statement.
SOURCE Texas American Resources, LLC