FBS Properties completes acquisition of oil and gas companies

FBS Properties Inc., founded by investor Fred Schneiderman, has concluded the acquisition of 100% of Warwick Oil & Gas Inc., Warwick Oil & Gas Inc., and Reserve Royalty Corp. The acquired companies have oil and gas interests in more than 20 counties and parishes in Texas, Arkansas, and Louisiana.

Shortly after FBS acquired interests in the companies, management refused to fully recognize FBS’s rights (see FBS Properties, Inc. v. Warwick Oil & Gas, Inc. et al, Cause No. 2012-33816). FBS engaged Smyser Kaplan & Veselka LLP (SKV), which then obtained court affirmation of all acquisition rights. After the trial court issued a final judgment, SKV handled the defendants’ appeal. The appellate court unanimously affirmed the trial court’s judgment in favor of the plantiff FBS.  

FBS is a privately held Texas corporation focused on oil and gas investment. In recent years, as the shale boom exploded in the energy sector, FBS sold a significant portion of its shale acreage holdings (accumulated over the past two decades) to major oil companies engaged in drilling North American shale plays. At the time that FBS’s shale acreage was sold, the aggregate oil and gas gross revenues anticipated on sold acreage sections exceeded one billion dollars. Although the sale price achieved by FBS for the shale assets remains confidential, Schneiderman confirmed: “The sales price represented a favorable transaction for each party.”

Upon the sale of its shale acreage, FBS also retained “significant” overriding royalty interests in every shale well drilled. In addition, as part of each sale, FBS retained all oil and gas rights in depths above and below the shale zones, and is planning a schedule to develop the additional reserves. FBS continues to seek additional opportunistic plays in the energy sector.

 

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