Austin-based independent Texas American Resources (TAR) sold all of its South Texas properties to an undisclosed buyer for $135 million Wednesday.
The sale includes the company’s existing production, proved reserves, Eagle Ford and Austin Chalk oil development opportunities.
The assets are located on TAR’s approximate 55,000 net acres of leasehold in Dimmit, Frio, La Salle, and Zavala Counties, Texas.
TAR said it will use the net proceeds from the sale to repay debt, flow back equity to its partners, and accelerate development on its oily Texas Panhandle assets.
“There are many remaining opportunities in our legacy South Texas portfolio and our buyer sees and embraces the upside the assets offer,” President and CEO of TAR David Honeycutt said.
TAR is an privately held exploration and production company.