HOUSTON -- Texas Energy Network LLC, a provider of next generation carrier-class communication services to the oil and natural gas industry, announced today the closing of a $20 million equity commitment with an investor group comprised of several prominent individuals in the energy industry. In addition, Amegy Bank of Texas has agreed to provide a line of credit with TEN to support the Company's growth. The proceeds of these financings will be used to build-out the Company's fourth generation long term evolution wireless network in the Permian Basin of west Texas and Eastern New Mexico and the Eagle Ford Shale of south Texas. The capital commitment will allow the Company to accelerate the development of its network and will provide TEN with the support needed to offer its clients a superior oilfield communications solution.
In addition to their equity commitment, the investor group provides TEN with a long track record of successful involvement in the oil and natural gas industry. Members are responsible for founding and operating numerous successful exploration and production and oilfield services companies. The investor group is excited about the opportunity to partner with management at TEN to bring a communications solution to the oilpatch that has the potential to revolutionize the transfer of information in the industry.
The equity commitment will fund TEN's growth plans to roll-out an extensive wireless network across some of the most active oil and natural gas basins in the country.
Gregory M. Casey, CEO and Founder of TEN, remarked, "We are very pleased to receive this level of commitment from our new majority owners who have strong ties to the oil and natural gas industry. Our intention is to quickly build-out our network in key areas of the Permian Basin and Eagle Ford Shale so we can provide our customers with the communications solution they require." TEN has developed a robust product offering to serve the oil and natural gas industry's growing bandwidth needs. Casey further stated, "our unique service offering allows energy companies to receive carrier-class communication service in the remote areas where they operate for the first time."