Laredo Energy Secures $130 Million in Equity Commitments to Support Texas Drilling Program
• For the first time in its 13-year history, Laredo Energy is operating in two Texas theaters and drilling for oil in addition to natural gas
• Expanded drilling program includes the Eaglebine oil play in East Central Texas
• Laredo Energy also actively drilling multiple natural gas formations in South Texas
HOUSTON, May 28, 2014-- Laredo Energy announced today that the company has secured a total of $130 million in private equity commitments from Avista Capital Partners and Liberty Energy Holdings, which is managed by Old Ironsides Energy, LLC. Laredo Energy will use the equity financing to support its drilling program. Since its formation in 2001, Laredo Energy has drilled more than 200 natural gas wells in South Texas. The company will build on this success by expanding operations to include a new oil drilling program targeting the Eaglebine play in East Central Texas while continuing to drill multiple gas formations in South Texas.
Laredo Energy has two rigs running and expects to drill a total of 25 wells this year. The company has more than 300 Bcfe in proved reserves and more than 50 MMcfe per day in gross operated production. The company’s assets include 62 operated producing wells, more than 110,000 gross acres of operated leases and non-operated interests in more than 31,000 gross acres.
Laredo Energy’s South Texas program is focused on the major natural gas resource plays in Webb County. The company has drilled 86 successful horizontal wells in Webb County’s stacked pay zones, including 27 in the Eagle Ford Shale, 43 in the Escondido formation, 13 in the Olmos, two in the Austin Chalk and one in the San Miguel formation. Laredo Energy’s Eaglebine program will focus on opportunities in Brazos, Burleson and Robertson counties. The Eaglebine is an emerging horizontal oil play in East Central Texas. It is home to a number of stacked pay zones including the Eagle Ford Shale, Georgetown, Buda, Austin Chalk limestones and multiple Woodbine Sand horizons.
Laredo Energy President and CEO Glenn Hart said, “We’re excited about adding new equity capital to continue our very successful natural gas horizontal drilling program in Webb County while we pursue a promising new area. Our goal is to take 13 years of success in multistacked gas reservoirs in South Texas and put that experience and knowledge to work in the Eaglebine oil play, where we have a 30,000-acre position that has similar multiple stacked pay attributes.”
About Laredo Energy
Formed in 2001, Laredo Energy is a privately held company engaged in the acquisition and development of natural gas and oil reserves in South Texas and East Central Texas. The company has drilled more than 200 operated wells in Webb and Zapata counties and acquired interests in several hundred more. Laredo Energy continues to drill 20 to 30 operated wells per year. Laredo is supported by equity capital from Avista Capital Partners and Liberty Energy Holdings, which is managed by Old Ironsides Energy. For more information, please visit www.laredoenergy.com.
About Avista Capital Partners
Avista Capital Partners is a leading private equity firm with over $5 billion under management. Founded in 2005, Avista makes controlling or influential minority investments in growth-oriented energy, healthcare, communications and media, industrials and consumer businesses. Through its team of seasoned investment professionals and industry experts, Avista seeks to partner with exceptional management teams to invest in and add value to well-positioned businesses. www.avistacap.com
About Old Ironsides Energy, LLC
Old Ironsides Energy, LLC is an independent oil and gas investment manager founded in 2013 by the former members of Liberty Energy Holdings, LLC. Since 2001, the team has built a multibillion dollar platform for investing in energy private equity and drilling joint ventures and has a history of creating value in the oil and gas business. The team is comprised of an experienced group of industry experts and benefits from significant continuity and stability with the four principals having worked together for over ten years. Through consistent application of its investment strategy, Old Ironsides Energy has a proven track record achieved through a combination of investment flexibility and long‐term alignment with partners. www.oldironsidesenergy.com
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