Laredo Energy has secured a total of $130 million in private equity commitments from Avista Capital Partners and Liberty Energy Holdings, which is managed by Old Ironsides Energy, LLC. Laredo Energy will use the equity financing to support its drilling program. Since its formation in 2001, Laredo Energy has drilled more than 200 natural gas wells in South Texas. The company will build on this success by expanding operations to include a new oil drilling program targeting the Eaglebine play in East Central Texas while continuing to drill multiple gas formations South Texas.
Laredo Energy has two rigs running and expects to drill a total of 25 wells this year. The company has more than 300 Bcfe in proved reserves and more than 50 MMcfe per day in gross operated production. The company’s assets include 62 operated producing wells, more than 110,000 gross acres of operated leases and non-operated interests in more than 31,000 gross acres.
Laredo Energy’s South Texas program is focused on the major natural gas resource plays in Webb County. The company has drilled 86 successful horizontal wells in Webb County’s stacked pay zones, including 27 in the Eagle Ford Shale, 43 in the Escondido formation, 13 in the Olmos, two in the Austin Chalk and one in the San Miguel formation. Laredo Energy’s Eaglebine program will focus on opportunities in Brazos, Burleson and Robertson counties. The Eaglebine is an emerging horizontal oil play in East Central Texas. It is home to a number of stacked pay zones including the Eagle Ford Shale, Georgetown, Buda, Austin Chalk limestones and multiple Woodbine Sand horizons.
Laredo Energy President and CEO Glenn Hart said, “We’re excited about adding new equity capital to continue our very successful natural gas horizontal drilling program in Webb County while we pursue a promising new area. Our goal is to take 13 years of success in multistacked gas reservoirs in South Texas and put that experience and knowledge to work in the Eaglebine oil play, where we have a 30,000-acre position that has similar multiple stacked pay attributes.”