Tall City Exploration LLC has closed an agreement with Moss Creek Resources LLC to sell substantially all of its exploration and production (E&P) assets in the Midland Basin for $803 million. Tall City’s E&P assets comprise the oil and gas rights to leases on approximately 71,000 acres in Howard and Borden counties, Texas, along with interest in 34 horizontal and six vertical wells that produce approximately 3,750 barrels of oil equivalent per day (boe/d).
In addition to the transaction with Moss Creek, in November 2014, Tall City sold approximately 15,000 acres and 1,400 boepd of current production in Reagan and Crockett counties, Texas, to American Energy – Permian Basin LLC for $440 million. The two transactions bring cumulative sales proceeds for Tall City to more than $1.2 billion.
RBC Richardson Barr acted as the exclusive financial advisor to Tall City for this transaction, and Bracewell & Giuliani acted as legal counsel.
Moss Creek Resources LLC was formed by Blue Whale Energy North America Corp. for the purposes of this transaction. Blue Whale is a US subsidiary of Blue Whale Energy Ltd., an energy investment company based in Beijing, China.