Parallel Resource Partners Invests In Texas American Platform, Expanding Existing Footprint in South Texas and the Texas Panhandle

AUSTIN, Texas, Dec. 17, 2012 /PRNewswire/ -- Parallel Resource Partners, LLC ("Parallel") today announced that it has invested in Texas American Partners, LLC ("Texas American"), a new upstream oil and gas company. Founded in 2012, Texas American was created from the reorganization of TARH E&P Holdings, L.P. and the acquisition of Texas American Resources Company. Both entities were founded by industry veteran David Honeycutt and are based in Austin, TX.

Parallel's equity commitment of $140 million will enable Texas American's management team to further capture the value of existing drilling inventory, as well as expand the Company's current footprint in in South Texas and the Texas Panhandle. Texas American's current properties include over 50,000 acres of mineral interests in the San Miguel, Austin Chalk, Eagle Ford and Buda formations in Dimmit, LaSalle, Zavala and Frio Counties in South Texas as well as approximately 19,000 acres in Hansford, Ochiltree and Lipscomb Counties in the Texas Panhandle. With 21 years of experience and operations in the Texas Panhandle and 10 years of experience in South Texas, Texas American will focus on bolt-on acquisitions with significant upside and expanding its acreage footprint in areas adjacent to the Company's current assets.

David Honeycutt, CEO of Texas American, said, "With the support of Parallel we have strengthened our balance sheet and are accelerating the harvesting of our high-quality drilling inventory. Our existing inventory has allowed us to provide an immediate return on invested capital and we are excited to expand our position in two top quartile basins where we have concentrated positions and strong historical expertise."

C. John Wilder, Chairman for Parallel, said, "Texas American is an excellent fit with Parallel's portfolio. This exciting investment immediately recapitalizes Texas American, ensuring the Company has the financial flexibility required to compete in the dynamic upstream market. Texas American now has the scale and support needed to concentrate its attention on developing and augmenting its deep inventory of high return drilling opportunities."

About Texas American Partners, LLC 

Texas American Partners, LLC ("TAP") is a growth-oriented, technology driven oil and gas company with an expanding footprint in its two core areas in the Texas Panhandle and South Texas. TAP's assets are long-lived in nature, have a strong bias toward oil and offer exposure to multiple play-types. The management team has a proven track record of creating value with significant experience managing assets in multiple basins in the United States. A combination of organic growth through the drill-bit and bolt-on acquisitions provide TAP an attractive platform going forward.

About Parallel Resource Partners, LLC

Parallel Resource Partners, LLC is a focused energy investment firm. Parallel utilizes its unique capabilities to invest in distress driven opportunities in the North American upstream oil and gas sector. Parallel is managed by complementary teams from affiliates of Bluescape Resources Company, LLC and Carlson Capital, L.P. that have substantial experience sourcing, evaluating, executing and managing oil and gas investments. Further information is available at www.parallelresourcepartners.com.

SOURCE Texas American Partners, LLC