Global private equity and infrastructure investment firm First Reserve has made an investment in Texas American Resources Company.
First Reserve has committed to provide up to $250m in private equity capital to Texas American, which will assist the latter in advancing its oil development opportunities in Eagle Ford Shale, South Texas.
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Texas American Resources CEO David Honeycutt said: “We are excited to have the support and confidence of First Reserve, and we are delighted to be their partner.
“With their support, we believe we have a unique opportunity and are looking forward to executing our business plan.
"We are also excited that we have closed the first of our targeted leasehold acquisitions and to be in a position to begin our development drilling programme so quickly.”
Texas American was established in 1991, with the objective to focus on oil and natural gas operations. It has been active in South Texas since 2003.
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By GlobalDataConcurrently, Texas American has acquired an initial leasehold position in the black oil window of the Eagle Ford trend in Atascosa County of Texas. The acquisition includes an area of about 12,000 acres.
Texas American has planned to initiate drilling at this site in the first quarter of 2017.
First Reserve managing director Michael France stated: “First Reserve believes that David and his team have the experience needed to develop what is, in our view, an underdeveloped and highly attractive package of assets.
“Furthermore, we anticipate this partnership will serve as the strong foundation to build an exciting platform in the Eagle Ford trend and look forward to an ongoing collaboration.”
With more than three decades of experience, First Reserve focuses on the energy sector. The company claimed to complete nearly 600 transactions and raised approximately $31bn of aggregate capital since the commencement of its operations.
