Tall City Exploration Receives $200 Million Commitment from Denham Capital
MIDLAND, Texas - (August 23, 2012) - Tall City Exploration, LLC today announced that it has closed on a $200 million equity commitment from Denham Capital, a leading energy and resources-focused global private equity firm. The capital will be used to pursue acquisition, exploration and development of oil and gas assets with a specific focus on upstream unconventional activities in the Permian Basin of West Texas.
Led by Chief Executive Officer Mike Oestmann and President Joe Magoto, Tall City Exploration was founded earlier this year and has already leased approximately 5,000 net acres in the Permian Basin. The company is currently engaged in discussions with several potential partners to increase their opportunity base and plans to begin drilling in spring 2013.
"We believe the unconventional opportunity set in the Permian Basin is only beginning to be exploited. Our team's on-the-ground experience and local relationships within the Basin will help Tall City build and realize a set of unconventional assets to the benefit of our all our stakeholders," said Oestmann.
A native of Midland, Oestmann has nearly three decades of experience in all aspects of the oil and gas business, with a particular focus on company start-ups, exploration, asset management and development. He began his career with Exxon in 1982 and went on to a succession of more senior positions at Titan, Pure Resources, Unocal , Celero, Whiting and most recently Piedra Resources. Magoto was formerly chief technical officer and board member at Parkman Whaling, LP, and managing senior vice president and board member at Ryder Scott Company. Magoto began his career at Exxon where he supervised the Corpus Christi District reservoir team.
"In making investment decisions, we look at a litany of qualifications, but one of the most important considerations is the quality and strength of Management," said Jordan Marye, a Managing Director in Denham Capital's oil and gas investment team.
"We are proud to partner with Joe and Mike and have every confidence that they and the entire team at Tall City will leverage this investment into a highly successful E&P organization."
In addition to the $200 million commitment from Denham Capital, the company recently raised an additional $5 million from Henry Resources and Tall City Strategic Partners -a group of company employees and local oil and gas investors from Midland.
About Tall City Exploration, LLC
Tall City Exploration, LLC is a Denham Capital-backed exploration and production oil and gas company headquartered in Midland, Texas with an additional office in Houston. The company's primary activities include the pursuit of acquisitions and the exploration and development of upstream oil and gas assets in the Permian Basin of West Texas.
About Denham Capital
Denham Capital is a leading energy-focused global private equity firm. With approximately $7.3 billion of invested and committed capital, Denham makes direct investments in the energy and resources sectors, including businesses involving oil and gas, metals and minerals, and power and renewables. With offices in Boston, Houston, Short Hills, London, Sao Paulo and Singapore, Denham invests globally, with investments currently in the U.S., Canada, South America, Europe, Australia and Asia. Denham invests across all stages of the corporate lifecycle, from exploration and development projects to mature, operating businesses, and all segments of the capital structure. For more information about Denham Capital, visit www.denhamcapital.com.