IPO Filing: Three Rivers Operating Company (TROC)

An SEC Filing came today for an initial public offing by a company called Three Rivers Operating Company Inc.  Terms were not made available other than it would sell up to $300 million worth of common stock and that shares were being sold by the company and by an existing stockholder.

Three Rivers intends to apply to list the company’s common stock on the New York Stock Exchange under the symbol “TROC.”  This filing lists book-running managers as Goldman Sachs, J.P. Morgan, and Credit Suisse. 

The company is an independent oil and gas exploration and production outfit.  Below is the company’s own description of itself:

We are an independent exploration and production company engaged in the exploration, development, production and acquisition of oil and natural gas in the Permian Basin of West Texas and Southeast New Mexico. Our drilling activity is primarily focused in the Bone Spring formation in New Mexico and the Wolfberry formation in West Texas. Both plays are characterized by high oil and liquids-rich natural gas content, multiple target horizons, long-lived resources, and high drilling success rates. In total we have accumulated 200,598 net acres in the Permian Basin, of which 65.4% is held-by-production, providing a multi-year inventory of 2,863 gross (2,212 net) identified future drilling locations and an additional 266 gross (212 net) identified recompletion opportunities.

        Since our inception in March 2010, we have increased our average daily production from 2,834 Boe/day in the month ended April 30, 2010 to 7,961 Boe/day for the three months ended September 30, 2011 through acquisitions and development drilling. For the three months ended September 30, 2011, 61% of our average daily production was oil or liquids volumes. The increase in our production includes the effects of sales of non-core assets that contributed approximately 340 Boe/day of production prior to their sale during the first five months of 2011. Cawley, Gillespie & Associates, Inc., our independent reserve engineers, estimated our net proved reserves to be 73.9 MMBoe as of September 30, 2011, an increase of 14.2% from our estimated pro forma net proved reserves as of December 31, 2010 of 64.7 MMBoe. As of September 30, 2011, 51.4% of our estimated proved reserves were classified as proved developed. As a result of our focus on oil and liquids-rich natural gas opportunities, we have increased the percentage of our estimated net proved reserves that constitute oil and natural gas liquids to 68% as of September 30, 2011 from 54% on a pro forma basis as of December 31, 2010.

The FULL SEC FILING is here.