Presidio Petroleum picks up Templar's assets through bankruptcy auction
Presidio Petroleum strengthened its position in the Anadarko Basin this month when it spent $91 million to acquire the assets of Templar Energy through a bankruptcy auction.
Oklahoma City-based Templar, which filed for protection from creditors in federal court in Delaware in June, obtained approval of the sale from a judge hearing the case on Aug. 6, ending its case the same week.
Presidio, headquartered in Fort Worth, Texas, was created in 2016 with a majority of equity provided by Morgan Stanley Energy Partners. It established initial operations in the Anadarko Basin.
In July 2019, it grew its presence within the basin when it acquired assets in Texas and western Oklahoma and Kansas from Apache Petroleum and affiliates for an undisclosed amount.
When Templar went to court, it held working interests
in about 2,165 oil and gas wells through leasehold positions covering about 273,400 largely contiguous acres across parts of northwestern Oklahoma and the Texas Panhandle.
Those wells were producing hydrocarbons from multiple, stacked formations in the western Anadarko, Canyon Resources and STACK plays.
Presidio officials described their company as one that uses technology and proven business techniques to optimize production and cash flows from existing assets.
“Presidio was founded with a differentiated strategy of pursuing attractive risk-adjusted returns through operational excellence and capital-efficient growth via acquisition, not drilling activity,” said Will Ulrich, Presidio’s co-founder/CEO. “We are excited to have completed this transaction consistent with that strategy, and welcome our new employees from Templar to the Presidio team.”
Templar, through subsidiary Templar Operating, employed 97 people.
Chris Hammack, Presidio’s other co-founder/CEO, described Templar’s assets as high quality additions that will serve as “a logical extension of the asset optimization strategy we established upon founding Presidio.”
Hammack said Presidio will use the knowledge it has gained through its previous Anadarko Basin acquisitions and decades of operational experience to responsibly unlock value from Templar’s former assets.
“We believe our extensive asset base, further enhanced by this acquisition, makes Presidio the logical consolidator of the Anadarko Basin.”
Robert Lee, managing director of Morgan Stanley Energy Partners, agreed.
“We believe Presidio’s prudent operational and risk management philosophy dating back to its inception puts the company on solid footing to continue to execute on acquisitions in a highly dislocated energy market,” Lee said. “We look forward to supporting the Presidio team as they implement their best-in-class operating practices on these assets.”