T&K Attorneys Advise EnCap Investments in $225 Million Equity Commitment to Sierra Oil & Gas

Houston – Thompson & Knight advised EnCap Investments LP (“EnCap”) in its $225 million investment in the formation of Mexico City-based Sierra Oil & Gas S de RL de CV (“Sierra”). EnCap has the option to double its existing commitment once the initial equity is fully invested.

The Thompson & Knight team included Partners Sarah E. McLean, Roger D. Aksamit, John R. Cohn, Anna Marie Dempsey, and Gabriel Ruiz, and Associates Nathan W. Stone and Paul Yin.

“Through its energy reform efforts, Mexico is in the process of allowing private energy exploration in the country, which means there is great potential for significant growth in Mexico’s oil and gas sector,” said Michael K. Pierce, the Firm’s Corporate and Securities Practice Group Leader. “We have been an active participant in the Mexican energy industry for decades. Our work for EnCap on this project is another example of how we have helped our clients participate in many of the groundbreaking projects that have led to the opening of Mexico’s energy sector.”
 
Sierra, Mexico’s first independent oil and gas E&P company, plans to participate in exploration, development, and production optimization opportunities in Mexico, and may consider opportunities in oil and gas transportation, storage, and processing.

Since 1988, EnCap has been a leading provider of private equity to the independent sector of the U.S. oil & gas industry. The firm has raised 18 institutional oil and gas investment funds totaling approximately $21 billion and currently manages capital on behalf of more than 250 U.S. and international investors.