Tall City Exploration sold 15,000 acres, 1,400 boepd in Reagan and Crockett Counties, Texas to American Energy in Nov. 2014
MIDLAND, Texas – Tall City Exploration LLC announced today that it has closed an agreement with Moss Creek Resources, LLC to sell substantially all of its exploration and production assets for $803 million.
Tall City’s E&P assets are comprised of the oil and gas rights to leases on approximately 71,000 acres in Howard and Borden Counties, Texas and interest in 34 horizontal and six vertical wells which produce approximately 3,750 barrels of oil equivalent per day.
“When we formed Tall City Exploration in 2012, we believed in the opportunity the Permian Basin had to offer our team and investors,” said Tall City CEO Mike Oestmann.
“We’re pleased to have successfully executed our strategy to the benefit of all parties involved. We anticipate that, through this transaction, our active drilling program will be maintained despite the market’s recent downturn and that it will continue providing jobs, tax and royalty income to the local, state and national economy.”
“I am extremely pleased with this transaction as it places Moss Creek in what we believe to be highly prolific acreage in the core of the Northern Midland Basin,” said Curtis Newstrom, president and CEO of Moss Creek Resources.
Tall City was formed in 2012 with a $300 million equity commitment from Denham Capital, a leading energy and resources-focused global private equity firm.
“Our team’s on-the-ground experience and local relationships within the Permian helped us build and realize an unconventional opportunity set we believed was only beginning to be exploited when we started this company,” said Tall City President Joseph Magoto.
In addition to the transaction with Moss Creek, in November 2014, Tall City sold approximately 15,000 acres and 1,400 boepd of current production in Reagan and Crockett Counties, Texas to American Energy – Permian Basin, LLC for approximately $440 million. The two transactions bring cumulative sales proceeds for Tall City to more than $1.2 billion.
“Denham has greatly enjoyed the collaborative partnership we’ve had with Tall City these past three years,” said Jordan Marye, Partner of Denham Capital.
“Mike, Joe and their team have created a highly capable and successful organization, a remarkable feat in today’s competitive marketplace. We are excited to continue our relationship with Tall City and build on the Company’s considerable success.”