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.