SAN MARCOS, Texas, Aug. 4, 2014 (GLOBE NEWSWIRE) -- Baron Production LLC ("Baron Production"), a wholly-owned subsidiary of Baron Energy, Inc. (Pink Sheets:BROE) ("Baron" or the "Company"), an independent oil and gas company based in San Marcos, Texas, recently closed a significant acquisition in South Texas with an effective date of July 1, 2014. Funding was provided by Petro Capital Energy Credit, LLC, Dallas, Texas ("Petro Capital"). Overton Capital, Corp., Dallas, Texas, acted as exclusive financial advisor to the Company.
Ronnie L. Steinocher, Chairman, President and CEO, said, "We are extremely pleased to have closed on this acquisition after more than eight months of continuous work including due diligence and securing funding. This completes our major goal for 2014 to acquire an anchor project with upside to provide Baron with substantial future growth opportunities."
Mr. Steinocher added, "This acquisition increases our anticipated consolidated revenue tenfold to approximately $425,000 per month and provides the means to further increase revenue over the next 12 months by drilling new horizontal wells. These properties, located in Frio County, Texas, include 8,082 acres, 8 producing leases, with 75% HBP, gross production of 204 BOPD and 180 MCFPD from 14 producers, and have a drilling inventory of new wells and recompletions for up to five years. Baron Production owns 89.1-100% working interest (65.9-74% net revenue interest) in the acquired properties. All of the properties are operated by Baron. Funding for phase-one of the drilling program is included as part of Petro Capital's funding commitment; thereafter, future drilling should be sustained out of cash flow. Based on analogs, new horizontal wells in the Austin Chalk could result in initial production rates of 150-500 barrels of oil per day (BOPD) with 50,000 to 300,000 barrels of ultimately recoverable crude oil per well. The cost of this type of horizontal well is approximately $2.0-2.2 million to drill and complete with well depths of 5,300 feet and lateral lengths of 3,000-5,000 feet. Furthermore, a number of the acquired leases include high potential, deeper Eagle Ford Shale, Buda Lime, and Pearsall Shale formations which could add major future value, if successfully developed. "
"In summary, this is a significant acquisition for Baron. It provides a major increase in production, revenue, and reserves, a substantial platform for both near-term and long-term growth via the drill bit with multi-zone horizontal opportunities, and alignment with an energy capital provider. "
About Baron Energy, Inc.
Baron Energy, Inc. (Pink Sheets:BROE) is an independent oil and gas acquisition, production, exploitation, and exploration company based in San Marcos, Texas, with producing assets in South and Central Texas. Baron owns 100% operated production that is approximately 90% oil with working interests ranging from 75% to 100% in properties located in Frio and Taylor Counties, Texas. Baron's high-growth strategy is to make meaningful acquisitions with substantial drilling upside. Baron is geographically focused on Texas and its surrounding states.
For more information, please visit www.baronenergy.com
About Petro Capital Funds
Petro Capital Funds is a boutique investment management firm specializing in the North American energy industry since the group's establishment in 2002. Petro Capital Funds and its affiliates are leading providers of growth and acquisition capital to small cap oil & gas and oilfield services companies. Petro Capital Energy Credit, LLC, primarily targets non-control senior secured and subordinated debt investments and supportive equity investments.
For more information, please visit www.petrocapitalfunds.com
About Overton Capital Corp.
Overton Capital Corp. ("OCC") is a Dallas, Texas based private investment banking firm that specializes in the energy sector, advising and assisting public and private small cap E&P and oilfield services companies to secure institutional capital to support their growth initiatives and for acquisitions and development projects.
For more information, please visit www.overtoncap.com
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "potential," "intend," and similar expressions. Such forward-looking statements, involved known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Baron Energy, Inc. (the "Company") to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including risk factors discussed in the Company's periodic fillings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT: Baron Energy, Inc. Investor Contact Brad Holmes (713) 654-4009 firstname.lastname@example.orgSource:Baron Energy, Inc.