Texas American Resources Company Completes New $15 Million Prepaid Swap

AUSTIN, Texas, April 21 /PRNewswire/ -- Texas American Resources Company ("TARC" or the "Company") today announced that its affiliate TARH E&P Holdings. L.P. ("TARH") has entered into a prepaid swap with Macquarie Bank Limited which effectively monetized a significant portion of the proved developed producing reserves in its Big Wells field. The Big Wells field is an established waterflood with a low production decline rate making it ideally suited for such a transaction. The prepaid swap allows the Company to maintain operations of the field and have additional upside from any enhancements in the value of the asset.

The prepayment provided TARH with $15.0 million of proceeds, which will be used for development capital expenditures and to reduce existing debt. TARH entered into swaps on its oil and gas production from the Big Wells field beginning in April 2010 and continuing through year-end 2018.

David Honeycutt, President and CEO of TARC said, "The prepaid swap we arranged with Macquarie Bank generated the equivalent value for the Company as an outright asset sale, once factoring in the residual unhedged cash flow retained by the Company, while allowing us to maintain the strategic benefit of the Big Wells field as our base of operation for our higher rate-of-return oil-prone Austin Chalk and Eagle Ford Shale opportunities. We appreciate the simplicity and timely execution of the transaction on the part of Macquarie."

ABOUT TEXAS AMERICAN RESOURCES COMPANY

Texas American Resources Company is a privately-held exploration and production company headquartered in Austin, Texas. Since its founding in 1990, TARC has focused on the acquisition and exploitation of on-shore oil and gas properties in Texas, Colorado and Wyoming.

The Company has a total proved reserve base of 30 MMBOE which is 32% developed and 57% oil and NGLs and has 48 MMBOE of 3P reserves. TARC operates over 400 wells and its company-wide total net daily production of approximately 2,700 BOEPD is 58% oil and NGLs.

LEGAL DISCLOSURE: Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly any express or implied statements concerning future financial condition or operating results.  Although Management believes that the expectations reflected herein are reasonable, the matters discussed in this release involve risks, uncertainties, and other factors that may delay, prevent or adversely affect the transaction or the Company's planned activities and operations. There can be no assurance that such expectations will prove correct. All forward-looking statements are expressly qualified by this cautionary statement.

SOURCE Texas American Resources Company

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED