[Context: On March 29, Quantum Energy-backed Tanos Exploration II completed its acquisition of North Louisiana assets from NGP-backed WildHorse Resource (NYSE: WRD) for $217m. Although not disclosed in the release, WildHorse identifies Tanos II in SEC filings. Further details and related links are below.]
TANOS ENERGY II | QUANTUM ENERGY
WildHorse Resource Development Corporation Announces Closing of North Louisiana Divestiture and Completes Borrowing Base Redetermination
HOUSTON–March 29, 2018–(BUSINESS WIRE)–WildHorse Resource Development Corporation (NYSE: WRD) announced today that it has closed the sale of its previously announced divestiture of its North Louisiana assets. WRD received net proceeds of approximately $217 million, subject to post-closing adjustments. Subsequent to the closing of the divestiture, 100% of WRD’s assets are located in the Eagle Ford Shale and Austin Chalk of East Texas.
In addition, WRD completed the regularly scheduled semi-annual redetermination of the borrowing base under its revolving credit facility. The redetermination, which includes the impact of the closed North Louisiana divestiture, resulted in an increased borrowing base of $1.05 billion from $875 million. The next regularly scheduled borrowing base redetermination is expected to occur in October 2018.
“The sale of our North Louisiana assets completes the transition of WRD to a pure-play in the Eagle Ford and Austin Chalk,” said Jay Graham, Chairman and Chief Executive Officer of WRD. “As a pure play, we will be able to focus entirely on our high-return Eagle Ford and Austin Chalk assets and projects such as the construction of our in-field sand mine. Furthermore, the proceeds from the North Louisiana sale and our increased borrowing base will help to fund our Eagle Ford program and bridge the gap to becoming free cash flow positive in the near future. In our 2018 program, we will extensively test various aspects of our completion design and will bring online 60% of our wells on four-well pads testing a variety of spacing assumptions. With a 404,000 net acre position, this year is about setting the groundwork on our completion and pad design in order to methodically develop this tremendous asset with over 30 years of inventory.”