A fledgling Oklahoma City energy company is poised to make a big splash in the Texas Panhandle next month.
Templar Energy LLC on Friday announced it had struck a deal to acquire $1 billion in oil and natural gas assets from Forest Oil Corp.
“We look forward to this addition to our asset base in our core operating area,” CEO David D. Le Norman said. “With our experienced team of professionals, we will continue to apply our expertise in horizontal drilling and completion technology gained over our many years of operating in the region.”
Templar was created last fall by global investment firm First Reserve Corp. Le Norman was tabbed to run the company in January.
The company's reserves are focused in the Anadarko Basin in northwest Oklahoma and the Texas Panhandle.
“The company has to date focused on the development of geologic targets containing significant oil and high liquid-yielding natural gas, and will continue to do so across its expanded, opportunity-rich property set,” Le Norman said.
Templar and joint venture partner Le Norman Fund I LLC estimate the Forest acquisition has a resource potential of more than 750 million barrels of oil equivalent.
The companies expect to produce more than 20,000 barrels of oil a day from the properties once the deal is closed.
Forest says the Texas Panhandle properties generated pretax earnings of about $180 million over the past 12 months. The Denver-based company is selling to help reduce debt as it sharpens its focus in south Texas' Eagle Ford Shale.
The sale is expected to close by Nov. 25.
Templar's first acquisition was 7,000 net acres in Ellis and Rogers Mills counties that produced an average of about 1,500 barrels of oil equivalent last October.