BlackBrush Oil & Gas, LP was formed and immediately partnered with Hick, Muse, Furst and Tate, of Dallas, Texas, to acquire Kerns Oil & Gas’ interest in the Catarina Field for $36 Million. The assets acquired from Kerns included over 250 wells and over 30,000 gross acres in Webb and Dimmitt Counties, Texas. BlackBrush℠ began an aggressive drilling program to develop the remaining acreage acquired from Kerns.
The year begins with the acquisition of Triumph
Petroleum’s producing properties and Frio County, Texas in February for
$10 Million. These properties included over 30 Austin Chalk wells and
22,000 gross acres. In August, BlackBrush℠ acquired selected producing
properties and undeveloped acreage in Karnes County, Texas from an
affiliate of Torch Energy for $10 Million. The Torch assets included
over 30 Edwards wells and 10,500 gross acres. Also in August,
BlackBrush℠ completed the sale of a partial working interest in the
Kerns properties to Constellation Energy for approximately $70 Million.
In addition, BlackBrush℠ acquired a working interest from Dominion
Reserves in the Shiner Ranch Field for $0.8 Million in December. During
the year, BlackBrush℠ spent over $24 Million to drill new wells or
workover existing wells.
In February,
BlackBrush℠ completed the Plains Acquisition for $0.2 Million. In April,
BlackBrush℠ acquired selected pipeline assets of Duke/FinTex for $0.5
Million BlackBrush℠ completed the Plains Acquisition for $0.2 Million.
BlackBrush℠/Texstar
completed the conversion of the crude oil pipelines into natural gas
service in South Texas in August at a cost of $8.3 Million. The project
was anchored TexStar/BlackBrush℠ in South Texas and poised it for future
growth. In December, BlackBrush℠ closed its largest acquisition to
date, by purchasing Enbridge’s Tilden, Texas processing plant and
interconnecting pipelines and the Eustace, Texas processing plant and
interconnecting pipelines two processing plants for $106 Million. Two
months later, BlackBrush completed the Eustace Plant Upgrade at a cost
of over $5 Million. This increased the capacity and recoveries of the
plant by 15%.
BlackBrush℠ struck a deal in March to acquire
producing properties in Frio County, Texas from Dale Operating for $0.8
Million. In December, BlackBrush℠ sold selected producing properties in
McMullen County, Texas to Gulftex Energy for $1.7 Million. In 2006,
BlackBrush℠ spent over $31 Million to drill new wells or workover
existing wells.
In July, BlackBrush℠ acquired
the Como Plant from Valence Energy for $80 Million. Later that month,
BlackBrush℠ sold its entire midstream business to Regency Gas Partners
for $350 Million.
BlackBrush℠ sold its remaining interest in its Catarina Field to St Mary
Land and Exploration Sale for $29.5 Million. The same month it acquired
the working interest of Durango Resources in the Shiner Ranch Field for
$0.5 Million. In 2007, BlackBrush℠ spent over $25 Million to drill new
wells or workover existing wells.