Bayou City Energy partners with TXON-SCZ to buy North Texas assets

Bayou City Energy supports experienced teams with fresh capital to develop legacy oil fields


HOUSTON, TX – Bayou City Energy Management, LLC, announced it has joined with TXON-SCZ, LLC to acquire producing oil fields in North Texas, primarily within the historic KMA Field of Wichita County, Texas.

TXON-SCZ was formed in 2015 through the contribution of producing oil and gas properties in North Texas.

The combined assets are 100 per cent operated, characterized by shallow declines and are comprised of long-lived oil production across 22,000-plus held-by-production acres.

The company will be led by industry veterans James Wuerth and Gilles Labbé.

“Bayou City is the right financial partner to help TXON-SCZ achieve its business plan for improving field level efficiencies, developing low-risk oily reserves, and prudently expanding a prolific yet under exploited conventional asset,” said Wuerth.

“Even though the KMA Field was discovered over ninety years ago, it still holds a significant volume of recoverable oil.”

“We are pleased to partner with a seasoned management team having decades of experience analyzing and developing the KMA Field and surrounding area in North Texas,” said William McMullen, Bayou City Energy founding partner, who added that the partnership illustrates his company’s core strategy of supporting experienced teams having local expertise with fresh capital to develop legacy oil fields.

“Together, we plan to make targeted acquisitions, prudently exploit the multiple shallow stacked pays, execute a long-term water flood strategy and improve operational efficiencies.”

Partner Mark Stoner says Bayou City Energy funds experienced management teams operating overlooked oil assets with significant unrealized upside.

“The company’s proven management team, substantial production, durable cash flows and years of visible growth potential from hundreds of repeatable PDNP and PUD opportunities with low finding and development costs make this an ideal partnership for Bayou City,” he said in a press release.