Texas American Resources, LLC 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.”
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