In October 2012, one of the principal shareholders of Future Petroleum, and Santa Fe resident, contacted his local banker to inquire about the bank providing growth capital to develop the company’s proven, but undeveloped reserves. The bank turned down the potential financing, but recommended a visit to a new private equity group in Santa Fe that was pursuing just such opportunities.
After our initial meeting with the principal shareholder, we were not only excited about the "off-the-radar" potential transaction, but discovered several synergies within the local Santa Fe market. One of SWGP's local advisory board members had a long-standing relationship with the principal shareholder of Future Petroleum, which would later prove to be critical to aassisting SWGP in closing the acquisition.
Nearly seven months after our initial meeting, exhaustive due diligence, extensive off-market negotiations with the sellers (no auction or other financial advisors to the sellers) and a $25mm equity capital raise, SWGP's first sponsored private equity fund, Taos Resources Fund I LLC (the Fund), acquired Future Petroleum.
SWGP has rebranded the company Taos Resources and put in place Logan Magruder, a seasoned oil and gas executive, to lead the company. SWGP has raised additional debt financing from Texas Capital Bank and Chambers Energy Capital to supplement the capital available for development. SWGP has an aggressive growth strategy to both develop proven reserves within Taos Resources' current suite of assets as well as pursue new exploration plays throughout Kansas.