NGR closes financing, acquires East Texas assets

New Gulf Resources LLC

New Gulf Resources LLC (NGR) has closed a $500 million financing transaction to support the acquisition of a key East Texas asset and for corporate purposes. NGR structured the transaction as a senior and subordinated debt issuance and also granted warrants to purchase equity in the company. The financing closed simultaneously with NGR's $450 million acquisition of 83,000 net acres in Leon, Grimes, Madison, Brazos and Walker counties, Texas, from subsidiaries of Houston-based Halcon Resources

The acquisition includes current production of 3,600 barrels of oil per day equivalent, a natural gas gathering and processing system that spans three counties, and rights to 330 square miles of newly shot and processed 3D seismic data over the acreage. NGR now has more than 90,000 acres in East Texas. 

The NGR team had previously been successful in producing horizontally from the Woodbine formation in two of the five distinct project areas acquired. The company plans to begin the initial phase of its drilling program in June and plans to exploit the Woodbine, Eagle Ford, Buda, Glen Rose, and multiple other prospective zones in the stacked-pay, target rich East Texas basin.

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