July 09, 2010

T&K Assists Alfa in $1.3 Billion Eagle Ford Shale Joint Venture

Houston - The global law firm of Thompson & Knight LLP has assisted Newpek, LLC ("Newpek"), a wholly owned subsidiary of Alfa S.A.B. de C.V. ("Alfa"), in a $1.3 billion purchase, sale, and joint development transaction involving the Eagle Ford Shale in South Texas.

As part of the transaction, a subsidiary of Reliance Industries Ltd. of Mumbai, India, acquired 45% of the working interests of Newpek and its partner, Pioneer Natural Resources Co., and committed to a carry obligation to support the drilling of approximately 356 horizontal wells per year through 2013.

William Prescott Mills Schwind and Joe A. Rudberg led the Thompson & Knight team of attorneys working on the transaction, which included Gabriel Salinas of the International Energy Practice Group, R. David Wheat and Sam L. Merrill of the Tax Practice Group, James W. McKellar of the Finance Practice Group, and Joe F. Flack III and Lucas A. LaVoy of the Oil and Gas Practice Group. Including the recent $1.4 billion joint venture between Mitsui & Co. Ltd. and Anadarko Petroleum Corp., this deal marks the second large U.S. shale play transaction involving foreign investors that the Firm has closed in the last few months.

Headquartered in Monterrey, Mexico, Alfa is comprised of four business groups in addition to energy: Alpek (petrochemicals), Nemak (aluminum auto components), Sigma (refrigerated food), and Alestra (telecommunications). The company is the world's leading manufacturer of high-tech aluminum engine heads and blocks, one of the world's largest producers of PTA, a petrochemical product, and has a leading market share in other petrochemicals in Mexico. In addition, Alfa is Mexico's leading producer of processed meats and cheese and one of the most important telecommunications services companies in Mexico.

Contact

Becky S. Jackson
Becky.Jackson@tklaw.com
214.969.1478