Company Overview

Since its beginning in 2004, BlackBrush Oil & Gas, LP has completed a series of value enhancing acquisitions and value realizing monetizations.

2004
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.

2005
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%.

2006
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.

2007
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.