San Marcos oil company adds South Texas holdings

Aug 4, 2014
Austin Business Journal

A unit of Baron Energy Inc. (Pink Sheets: BROE) has closed on the acquisition of 8,082 acres in South Texas containing eight producing leases that the San Marcos, Texas-based company said completes its 2014 goal of acquiring an "anchor project" that will boost long-range growth prospects

The properties in Frio County were acquired by Baron Production LLC

"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," said Ronnie Steinocher, Baron Energy president and CEO, in a statement

Initial production estimates are 150-500 barrels of oil per day with between 50,000 and 300,000 barrels of ultimately recoverable crude oil per well, the company said

Overton Capital Corp. of Dallas was Baron Energy's financial adviser for the acquisition. Funding was provided by Petro Capital Energy Credit LLC, also based in Dallas. The transaction closed on July 1

Print Article opens in new window