Tall City, LLC’s Technical Assistance: Scott Marshall recently completed a three year contract providing part-time technical assistance to Tall City Energy LLC in developing and maintaining the company’s reserve review databases and developmental models. Tall City used these reserve reviews and models to meet their borrowing base and divestment activity requirements.
Overview Tall City was formed in 2012 with a $300 million equity commitment from Denham Capital, a leading energy and resources-focused global private equity firm. Tall City focused their efforts on the Permian Basin Spraberry and Wolfcamp plays.
In a November 30, 2015 press release – Tall City Exploration LLC (“Tall City”) announced that it closed an agreement with Moss Creek Resources, LLC (“Moss Creek”) to sell substantially all of its exploration and production (“E&P”) assets for $803 million (subject to typical closing adjustments). Tall City’s E&P assets were comprised of the oil and gas rights to leases on approximately 71,000 acres in Howard and Borden Counties, Texas and interest in 34 horizontal and six vertical wells which produce approximately 3,750 barrels of oil equivalent per day (boepd). In addition to the transaction with Moss Creek, in November 2014, Tall City sold approximately 15,000 acres and 1,400 boepd of current production in Reagan and Crockett Counties, Texas to American Energy – Permian Basin, LLC for approximately $440 million. The two transactions bring cumulative sales proceeds for Tall City to more than $1.2 billion. “Our team’s on-the-ground experience and local relationships within the Permian helped us build and realize an unconventional opportunity set we believed was only beginning to be exploited when we started this company,” stated Tall City President Joseph Magoto.
Scott was essential in working with Tall City’s land department to determine potential drilling unit locations, well interests for both Tall City and their partners, along with developmental timing based on lease requirements and expirations. Scott’s duties included coordinating reserve database deliveries to Ryder Scott for both annual financial reporting and divestment along with the quality control of returned data and subsequent delivery to JP Morgan for the company’s borrowing base requirements and various potential companies overseeing or interested in the company’s divestment activities.