Exit: Vortus’ Roxo Energy sells Permian holdings to Murchison Oil


[Context: On November 6, Vortus Investments-backed Roxo Energy sold Permian assets to Murchison Oil and Gas. Terms were not disclosed. Further details, advisors and related links are below.]

Roxo Energy  | Vortus Investments

Roxo Energy Announces Sale Of Its Howard And Borden County Leasehold Position To Murchison Oil And Gas

FORT WORTH, Texas, Nov. 6, 2018 /PRNewswire/ — Roxo Energy (“Roxo”), a privately held independent E&P company, of Fort Worth, Texas, today announced that on October 26th, 2018, it closed on the sale of its interest in oil and gas leases and wells in Howard and Borden Counties, Texas, to Murchison Oil and Gas (“Murchison”). Murchison’s purchase was financed by an investment group led by Angelo Gordon, and included MSD Partners, L.P. and Ares Capital Corporation. Roxo’s leasehold is located in the premier development corridor of the Northern Midland basin, targeting the prolific Wolfcamp and Spraberry play. The properties consist of approximately 5,300 contiguous leasehold acres, surrounded by significant development activity by quality offset operators. This sale comes just 20 months after Roxo’s entry into the play. Roxo will retain its mineral interests in the Permian Basin and continue pursuing its strategy of acquiring and developing attractive oil & gas assets within the United States.

“We are excited about adding the Roxo asset to our portfolio. We believe the area’s potential is only beginning to be realized and this asset will play a key role in our strategy going forward. It was great working with the Roxo team and we commend them for putting together such an attractive position. Murchison Oil and Gas is thrilled to be partnered with such a high-quality and knowledgeable group of investors in Angelo Gordon, MSD, and Ares Capital, and we look forward to creating significant value for our investors,” said Murchison CFO Mike Thomann.

“I am proud of our team and the collective efforts to deliver on our strategy. Shortly after entering the area, we began receiving enough interest to warrant initiating a process to test the market and we were pleased with the ultimate outcome. We enjoyed working on this transaction with the Murchison team and feel especially fortunate to be partnered with Vortus Investments, and are appreciative of their expertise, involvement, and confidence in our team,” said Roxo CEO Todd Fitzgerald.

“We knew early on that from a subsurface perspective, the position measured up identically to the core of Howard County at that time,” said Roxo Chief Geologist James Vess. Roxo President J.W. Wilson added that he is, “very proud of how our team utilized a technical and grass roots approach to building this position.”

RBC Richardson Barr acted as exclusive financial advisor to Roxo Energy.

Seaport Global Securities acted as exclusive financial advisor to Murchison Oil and Gas.

Kirkland & Ellis, LLP acted as legal advisor for Roxo Energy. The Kirkland team was led by corporate partners Rahul Vashi and Shubi Arora and associate Lindsey Jaquillard.

Thompson & Knight led by partner Robert Dougherty and associate John Phair acted as legal advisor for Murchison Oil and Gas.

About Roxo Energy

Roxo Energy, LLC is a Fort Worth based oil and gas acquisition and development company founded in December 2015, by three former TCU footballers Todd Fitzgerald (CEO), James Vess (Chief Geologist), and J.W.Wilson (President). The company was formed on a vision and a capital investment by private investors. Once the original acreage was identified, Roxo partnered with local private equity firm Vortus Investments to grow and develop the position. Roxo will remain active in the Permian and other basins.

About Vortus Investments

Vortus Investments LLC is a Fort Worth-based private equity firm focused on the domestic onshore upstream energy industry. Founded in 2013, Vortus manages approximately $1 billion of committed capital with an asset-based investment strategy providing acquisition and development capital in partnership with successful owner/operators in the E&P industry. Vortus targets privately negotiated transactions in the lower-middle market requiring approximately $25 million to $75 million of equity capital.

About Murchison Oil and Gas

Murchison Oil & Gas, LLC is a privately-held independent oil and gas company engaged in the acquisition, development and production of oil and gas resources in the United States. The Company’s core areas of operations are the Permian Basin in New Mexico and Texas and the San Juan Basin in Colorado. Murchison Oil & Gas is led by a seasoned team of oil and gas executives, who have decades of experience and a strong track record of value creation. The Company’s management philosophy revolves around day-to-day involvement in operations, a focus on prospect generation, a disciplined acquisitions strategy, and environmental care. Murchison Oil & Gas was founded in 1979 and is headquartered in Plano, Texas. The Company has a local office in Carlsbad, New Mexico.

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