Haynes and Boone, LLP helped client Endeavor Energy Resources strike a $300 million agreement with a Houston company to develop properties located within the Midland Basin in Texas.
Endeavor, a Midland, Texas-based operator with expertise in the development of Wolfcamp horizontal wells, will partner with Development Capital Resources (DCR), a Houston-based oil and gas company formed by Ares Management, L.P. DCR will fund the majority of the capital required and will participate as a non-operator to finance and develop identified locations. Upon achieving an agreed upon return, DCR’s working interest will decrease during the operations phase of the drilling joint venture.
Damon Button, Endeavor’s chief financial officer, told the Midland Reporter-Telegram that “the drill fund was a strategic move on our part to accelerate many of our objectives and build critical mass in our business.”
Houston Associate Austin Elam led the team that represented Endeavor in the drilling partnership, which included fellow Houston Associates Matthew Rountree and Denny Lee.
Haynes and Boone regularly handles complex, high-stakes upstream, midstream and oilfield service transactions and litigation, as well as financings and regulatory advice, for a diverse array of clients in the Permian Basin and other areas in the United States and overseas.