Talon Oil & Gas

 

Portfolio

Investment: 
2010

Talon Oil & Gas was a Dallas-based independent oil and gas company focused on creating value through the acquisition and exploitation of producing properties in the Barnett Shale, East Texas and the Texas Panhandle. Talon was formed by a team of seasoned E&P executives with over 180 years of aggregate experience in all facets of the upstream oil and gas business. Furthermore, the majority of the team has worked together for 19 years in key senior positions at Coda Energy, Belco Oil & Gas, Westport Resources, Kerr-McGee Corporation and Talon, where they have been involved in $27.5 billion of oil and gas transactions.

After its formation in January 2007, Talon completed $551 million of producing property acquisitions yielding an aggregate 537 Bcfe of proved reserves and 83 MMcfe/d of daily production for an attractive $1.03/Mcfe and $6,607/Mcfe/d. In addition to creating value through privately negotiated acquisitions of quality assets for below-market prices, the team utilized its technical expertise to further enhance returns through strategic exploitation and operational improvements. As a result of these efforts the aggregate PDP, total proved and 3P reserves of the properties increased by 25%, 58% and 65%, respectively. In December 2010, Talon closed the sale of its assets for a combined $1 billion to EnerVest (Barnett), Devon (Texas Panhandle) and an undisclosed third party (East Texas). 

EnCap currently is partnered with the Talon management team in Talon Oil & Gas II, which was formed in January 2011.