GulfTex II builds war chest for acquisitions GulfTex Energy II LP’s management team plans to capitalize on the success achieved by its predecessor company, GulfTex Energy LLC, to acquire, consolidate and develop a critical leasehold position in the Eagle Ford Shale with a specific focus on the oil and gas condensate window. GulfTex II raised $160 million in equity commitments from management, Guggenheim, Wells Fargo and Prudential. Mitchell Energy Advisors advised GulfTex on the capital raise. The company’s first acquisition is in the hottest play in the country – the Eagle Ford Shale. GulfTex picked up a stake in some EOG-operated assets in Karnes and Gonzales Co. which produced 1,770 boe/d gross (706 boe/d net). GulfTex paid $42.1 million in aggregate to three undisclosed sellers.

The predecessor company sold its assets in 2010 and 2011 for a combined total of $59.7 million. A majority of these assets were in the Eagle Ford Shale. The bulk of those assets were sold in 2010 in deals valued at $52.6 million. Those properties included 29,200 gross acres (12,762 net) in the gas condensate and in the oil window of the Eagle Ford and were producing ~10.6 MMcf/d and 832 b/d gross (770 Mcf/d and 63 b/d net) from five wells. The assets were 74% operated by GulfTex on a net acreage basis. The other properties operated by Talisman, Petrohawk and Escondido Resources. CEO Brad Jauer said, “GulfTex I sold its assets in the Eagle Ford because as a company backed by private equity, we had reached a point in our lifecycle where it just made economic sense to sell all of the company’s assets and reload with fresh capital. Our previous equity partner, EnCap Investments, was a real value-added partner and we look forward to having the same successful relationship with our new equity partners.” The new entity is interested in acquiring additional non-operated Eagle Ford shale assets that are operated by well experienced operators such as EOG and that are located in its area of interest. The company plans to focus on the oil and gas condensate window given where commodity prices are today, which has resulted in this portion of the play having by far the most attractive economics, Jauer said. GulfTex Energy II is led by Brad Jauer, President & CEO; Richard Marshall, Vice President & COO; and Van Taylor, CFO.