New
Gulf Resources, LLC ("NGR") today announced the closing on May 9 of a
$500 Million financing transaction to support the acquisition of a key
East Texas asset and for corporate purposes. NGR structured the
transaction as a senior and subordinated debt issuance and also granted
warrants to purchase equity in the Company. The financing closed
simultaneously with NGR's $450 Million, before closing adjustments,
acquisition of 83,000 net acres in Leon, Grimes, Madison, Brazos and
Walker Counties, Texas from subsidiaries of Houston-based Halcon
Resources. The acquisition includes current production of 3,600 barrels
of oil per day equivalent, a natural gas gathering and processing
system that spans three counties, and rights to 330 square miles of
newly shot and processed 3D seismic data over the acreage. NGR now has
over 90,000 acres in East Texas. The NGR team had previously been
highly successful in producing horizontally from the Woodbine formation
in two of the five distinct project areas acquired. The Company plans
to begin the initial phase of its drilling program in June and plans to
exploit the Woodbine, Eagle Ford, Buda, Glen Rose and multiple other
prospective zones in the stacked-pay, target rich East Texas basin.
"Today we have married a first class hydrocarbon rich asset with a team
that has successfully exploited and developed two prior projects in the
basin," said Ralph Hill, Chairman and CEO. "We expect to increase
production substantially as we deploy a multiple rig program in these
proven areas." As a key part of this project, NGR has entered into a
Strategic Alliance with Halliburton to furnish certain well products and
services. Included in the Alliance is the opportunity for NGR to be on
the forefront of utilizing Halliburton's Cypher Process.
About New Gulf Resources, LLCNew Gulf
Resources, LLC (www.newgulfresources.com) is based in Tulsa, Oklahoma
and owns, manages and operates upstream energy projects primarily in
East Texas. NGR is highly experienced in the application of advanced
technologies such as horizontal drilling and multi-stage fracture
stimulation to maximize the value of U.S. oil reserves.
SOURCE New Gulf Resources, LLC
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