TEXEGY LLC has completed on Sept. 24 a transaction whereby it has entered into definitive agreements to lease a portion of its Austin Chalk minerals to Equinor Louisiana Properties LLC, a subsidiary of Equinor ASA.
As part of this leasehold transaction, Equinor is now the operator of a substantial portion of TEXEGY’s Austin Chalk assets in the Burr Ferry Field predominately located in Vernon Parish, La. Prior to this transaction, TEXEGY owned a majority of its Austin Chalk interests at 100% working interest and 100% net revenue interest.
TEXEGY was formed in late 2014 and has focused its efforts on acquiring and developing assets in Texas and Louisiana, which total over 100,000 acres. Burr Ferry and South Bearhead Creek fields in Vernon and Beauregard parishes, respectively, comprise the majority of the company’s Louisiana properties. AWP and Raccoon Bend fields in McMullen and Austin counties, respectively, make up the majority the company’s Texas properties.
“We could not be happier about this partnership,” Sherif Wadood, co-founder of TEXEGY, said. “Everyone in the industry is familiar with Equinor and their technical and commercial expertise. This asset is unique—not only is it a part of the well-proven Brookland field, but it also has wells that have produced in excess of one million barrels of oil equivalent per well without the advantage of modern completions. We look forward to working together with Equinor to not only maximize the value of their leasehold interests but also our retained royalty interest.”
Houlihan Lokey acted as financial advisor to TEXEGY, and Branscomb PC acted as legal counsel to TEXEGY for the transaction.
Recommended Reading
Whitecap Sells Stakes in Gas Processing Plants in Two Deals
2024-07-02 - In separate deals, WhiteCap Resources sold gas processing assets to Topaz Energy and Pembina Pipeline—a move that strengthens Pembina’s Western Alberta position, an analyst said.
Tellurian Goes All in on LNG with Upstream Divestiture to Aethon
2024-05-30 - Tellurian, which is developing the 27.6 mtpa Driftwood project in Louisiana, relaunched itself as a LNG pure play with the sale of its Haynesville upstream assets to Aethon Energy, but analysts see lingering financial problems for the company.
TotalEnergies Cements Oman Partnership with Marsa LNG Project
2024-04-22 - Marsa LNG is expected to start production by first quarter 2028 with TotalEnergies holding 80% interest in the project and Oman National Oil Co. holding 20%.
EIG’s MidOcean Closes Purchase of 20% Stake in Peru LNG
2024-04-23 - MidOcean Energy’s deal for SK Earthon’s Peru LNG follows a March deal to purchase Tokyo Gas’ LNG interests in Australia.
Tokyo Gas Seeks More US Natural Gas Assets, President Says
2024-06-04 - The Japanese company paid $2.7 billion to acquire Texas-based natural gas producer Rockcliff Energy in December and agreed to purchase a 49% stake in North American energy marketing and trading firm ARM Energy Trading in February.