Roxo Energy has completed sale of its stake in oil and gas leases and wells in Howard and Borden Counties, Texas, to Murchison Oil and Gas.
Image: Onshore drilling. Photo: courtesy of Stuart Miles/Freedigitalphotos.net.
Murchison’s purchase was financed by an investment group led by Angelo Gordon, and included MSD Partners, L.P. and Ares Capital Corporation. Roxo’s leasehold is located in the premier development corridor of the Northern Midland basin, targeting the prolific Wolfcamp and Spraberry play.
The properties consist of approximately 5,300 contiguous leasehold acres, surrounded by significant development activity by quality offset operators. This sale comes just 20 months after Roxo’s entry into the play. Roxo will retain its mineral interests in the Permian Basin and continue pursuing its strategy of acquiring and developing attractive oil & gas assets within the United States.
Murchison CFO Mike Thomann said: “We are excited about adding the Roxo asset to our portfolio. We believe the area’s potential is only beginning to be realized and this asset will play a key role in our strategy going forward.
“It was great working with the Roxo team and we commend them for putting together such an attractive position. Murchison Oil and Gas is thrilled to be partnered with such a high-quality and knowledgeable group of investors in Angelo Gordon, MSD, and Ares Capital, and we look forward to creating significant value for our investors.”
Roxo CEO Todd Fitzgerald said: “I am proud of our team and the collective efforts to deliver on our strategy. Shortly after entering the area, we began receiving enough interest to warrant initiating a process to test the market and we were pleased with the ultimate outcome.
“We enjoyed working on this transaction with the Murchison team and feel especially fortunate to be partnered with Vortus Investments, and are appreciative of their expertise, involvement, and confidence in our team.”
Roxo chief geologist James Vess said: “We knew early on that from a subsurface perspective, the position measured up identically to the core of Howard County at that time.”
Roxo President J.W. Wilson added that he is, “very proud of how our team utilized a technical and grass roots approach to building this position.”
RBC Richardson Barr acted as exclusive financial advisor to Roxo Energy.
Seaport Global Securities acted as exclusive financial advisor to Murchison Oil and Gas.
Kirkland & Ellis, LLP acted as legal advisor for Roxo Energy. The Kirkland team was led by corporate partners Rahul Vashi and Shubi Arora and associate Lindsey Jaquillard.
Thompson & Knight led by partner Robert Dougherty and associate John Phair acted as legal advisor for Murchison Oil and Gas.
Source: Company Press Release