Texas American Resources Co., Austin, Texas, has acquired several producing properties in the Denver-Julesburg Basin, northeast Colorado, for $70 million. The acquisition includes producing properties in the Wattenberg Field in Adams and Weld counties, Colorado, with estimated proved reserves of some 56.4 billion cubic feet of gas equivalent (43% developed; 66% gas). The properties have current production of approximately 6 million cubic feet of gas equivalent per day (69% gas) and five recently drilled wells currently waiting completion. Pro-forma for this acquisition, Texas American Resources will have proved reserves of some 124 billion cubic feet of gas equivalent (63% developed; 36% gas) and net production of approximately 19 million cubic feet of gas equivalent per day (34% gas). The acquisition was financed with proceeds from the company's $70 million senior revolving credit facility and a new five-year, $55 million subordinated, secured term loan. BNP Paribas, Union Bank of California NA and Hibernia Bank were agents for the financings while Rivington Capital Advisors LLC was advisor for the transaction. "The DJ acquisition gives Texas American Resources an anchor asset in the Rockies and allows our company to grow our natural gas reserves in a repeatable play," says David Honeycutt, president of Texas American Resources.
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