Chinese energy investor buys assets from Denham-backed Tall City

The acquisition is being made by Moss Creek Resources, a wholly-owned entity of Blue Whale's North American subsidiary.

Tall City was formed in 2012 to build up a portfolio of assets in the Permian Basin, which is located in Texas and New Mexico. The company received a $300 million equity commitment from energy and resources specialist Denham.

Tall City's exploration and production assets comprise rights to leases on approximately 71,000 acres of land and interest in 34 wells that produce approximately 3,750 barrels of oil equivalent per day (boepd). This is the company's second asset sale, following American Energy's purchase of 15,000 acres - producing 1,400 boepd - for $440 million in 2014.

"We anticipate that, through this transaction, our active drilling program will be maintained despite the market's recent downturn and that it will continue providing jobs, tax and royalty income to the local, state and national economy," Mike Oestmann, CEO of Tall City, said in a statement.

Earlier this year, Blue Whale paid $315 million for Juno Energy II, another private equity-backed oil and gas producer in the Permian Basin.

Denham has more than $8.4 billion of invested and committed capital across eight funds. Working out of offices in Houston, London, Boston, São Paulo and Perth, it makes direct investments in the energy and resources sectors, including businesses involving oil and gas, power generation and mining.

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• Topics
• Exits
• Greater China
• North America
• Industrials
• Denham Capital
• energy
• Exit
• Trade sale
• China
• USA
• Commodities