HOUSTON, TX–(Marketwired – Nov 3, 2015) – Bayou City Energy Management, LLC (“Bayou City”, “BCE” or the “Firm”), announced it has joined with TXON-SCZ, LLC (“TXON-SCZ”, or the “Company”) to acquire producing oil fields in North Texas, primarily within the historic KMA Field of Wichita County, Texas. TXON-SCZ was formed in 2015 through the contribution of producing oil and gas properties in North Texas. The combined assets are 100% operated, characterized by shallow declines and are comprised of long-lived oil production across 22,000+ held-by-production acres. The Company will be led by industry veterans James Wuerth and Gilles Labbé.
BCE Founding Partner, William McMullen, said: “We are pleased to partner with a seasoned management team having decades of experience analyzing and developing the KMA Field and surrounding area in North Texas. This partnership is emblematic of Bayou City Energy’s core strategy of supporting experienced teams having local expertise with fresh capital to develop legacy oil fields. Together, we plan to make targeted acquisitions, prudently exploit the multiple shallow stacked pays, execute a long-term water flood strategy and improve operational efficiencies.”
BCE Partner, Mark Stoner, added, “Our partnership with TXON-SCZ highlights what we do best, fund experienced management teams operating overlooked oil assets with significant unrealized upside. The Company’s proven management team, substantial production, durable cash flows and years of visible growth potential from hundreds of repeatable PDNP and PUD opportunities with low finding and development costs make this an ideal partnership for Bayou City.”
“We are pleased to partner with Bayou City to expand our presence and accelerate the development of identified upside across our North Texas acreage position,” said Mr. Wuerth. “Bayou City is the right financial partner to help TXON-SCZ achieve its business plan for improving field level efficiencies, developing low-risk oily reserves, and prudently expanding a prolific yet under exploited conventional asset. Even though the KMA Field was discovered over ninety years ago, it still holds a significant volume of recoverable oil.”
Mr. Labbé added, “Our consolidated position in the heart of the KMA Field make TXON-SCZ one of the largest private operators in the area. Increasing our operational footprint in North Texas will help further reduce per-unit development and operating costs in fields that generate healthy operating margins, even at prevailing oil prices, and will help us become the premier operating company in the region.”
Bayou City Energy is a private equity firm focused on making investments in the North American upstream oil & gas sector, targeting deal sizes of $5 to $50 million. Bayou City targets privately negotiated investments through two complementary strategies: Providing buyout and growth equity capital for small operators with current production, and partnering with leading operators to provide dedicated drilling capital in off-balance sheet structures. The BCE team, combined with the Firm’s highly qualified Advisory Board and strategic relationship with Intervale Capital, provide small to mid-sized operators access to expertise, capital and quality services typically available only to much larger enterprises.
TXON-SCZ is a private, independent oil and gas company headquartered in Houston, TX focused on achieving significant returns through the acquisition and exploitation of oil and gas properties in shallow, legacy fields in the United States, primarily in North Central Texas. The Company combines proven oil and gas leadership with highly skilled technical talent to create a superior management team with over 150 years of industry experience. The team has vast technical experience in primary, secondary, and tertiary recovery techniques including water flooding, horizontal drilling, alkali surfactant injection, and CO2, among others. TXON-SCZ, LLC was formed to combine the assets and employees of TXON Partners, LLC, TXON Partners II, LLC, TXON Services, LLC, and SCZ Resources, LLC.