Mikaila Adams, Senior Associate Editor - OGFJ
Independent research firm IHS has provided OGFJ with updated production data for our periodic ranking of US-based private E&P companies. The rankings are based on operated production only within the US.
As we move from end-of-year 2013 data in the July installment of the OGFJ100P to this, the start of 2014 production data, companies listed in the Top 10 rankings move, as well. Falling out of the Top 10 list of privately-held gas producers for this installment are Chief Oil & Gas, J-W Operating, and Castex Energy. Moving in are Bass Companies, Valence Operating, and Indigo Minerals. Changes to the companies named as a Top 10 privately-held liquids producer were fewer. Bass Companies dropped out of the list, and Petro-Hunt moved in. Production totals are based on latest year-to-date figures as reported to and recorded by individual state agencies and tabulated at the time of publication. As some agencies were delayed in releasing data, rankings were potentially impacted.
M&A
In early August, privately-held Liberty Resources II LLC agreed to a Bakken asset exchange with Emerald Oil Inc. Liberty will exchange a portion of its holdings in North Dakota's Williston Basin for additional acreage in the Williston Basin and approximately $78.4 million in cash. In addition to the cash received, Liberty will acquire approximately 4,175 net acres in Williams County, ND which will add an estimated 30 operated drilling locations to the company's portfolio. As part of the transaction, Liberty will divest approximately 31,500 non-core acres in McKenzie County, ND with current net production of approximately 400 boepd. Denver, CO-based Liberty Resources II LLC was founded in 2013 and is funded through equity investments from funds managed by Riverstone Holdings LLC.
Also in early August, privately-held Hunt Oil Co. closed a deal to sell natural gas, oil, and natural gas liquids assets in North Louisiana and East Texas to Vanguard Natural Resources for $274.7 million. The properties consist of approximately 23,000 net acres that are currently producing approximately 17.5 MMcfe per day with approximately 67% natural gas and 33% oil and NGLs. With the acquisition, Vanguard gains working interest in more than 290 producing wells and 78 proved undeveloped vertical drilling locations. Hunt Oil Co., ranked No. 11 in this OGFJ100P list, got its start in the East Texas field in 1934.
Management changes
In August, privately-held Sabine Oil & Gas LLC reported that Shane M. Bayless, the company's executive vice president and CFO, will leave Sabine to pursue other opportunities. Bayless will step down upon closing of the previously announced merger between Sabine and Forest Oil Corp. The deal, announced in May, is expected to create one of the largest East Texas players. Bayless has served as Sabine's CFO since its inception in 2007.Sabine's current operations are principally located in the Cotton Valley Sand and Haynesville shale plays in East Texas, the Eagle Ford shale play in South Texas, and the Granite Wash shale play in the Texas Panhandle.
Covington, LA-based LLOG Exploration Co., currently ranked No. 6 on the OGFJ100P list, has promoted Philip S. LeJeune to CFO to replace John Newman, who retired after serving as LLOG's CFO for the last 11 years. LeJeune brings nearly 20 years of experience to his position at the privately-held company. LeJeune has spent 17 years at LLOG, most recently as vice president, planning & budgeting. He received his Bachelor of Science degree in Accounting from Louisiana State University and his MBA from Loyola University.
Financing
In late August, Tug Hill Inc. formed a partnership with private equity firm Quantum Energy Partners to engage in the acquisition, development, and exploitation of conventional and unconventional oil and gas assets in certain North American basins. The partnership is supported by an initial $450 million equity commitment from Quantum and Tug Hill. Founded in 2007, Tug Hill is a privately-held oil and gas operating company based in Fort Worth, TX, with offices in Pittsburg, PA, and Boulder, CO. In 2007, Tug Hill partnered with Chief Oil & Gas and collectively built a land position in excess of 600,000 acres in the Marcellus shale. Tug Hill has participated in over 750 Marcellus shale wells to date and plans to continue to participate in the drilling and development of its Marcellus assets. The company will continue to manage its existing Marcellus and legacy properties outside of the partnership.
In mid-September, Englewood, CO-based Vantage Energy Inc. launched an initial public offering of 23,550,000 shares of its common stock, at an anticipated IPO price between $24.00 and $27.00 per share. When the Marcellus- and Barnett-focused company filed with US regulators in July, it reported plans to raise approximately $400 million through its IPO. Vantage Energy, ranked No. 36 in this installment, has been approved to list its common stock on the New York Stock Exchange under the symbol "VEI". Barclays; Goldman, Sachs & Co.; Citigroup; Credit Suisse; Tudor, Pickering, Holt & Co.; and Wells Fargo Securities will act as joint book-running managers of the offering.
Click here to download the PDF of the "2014 Year-To-Date Production Ranked By BOE"
Click here to download the PDF of the "2014 Year-To-Date Production - Alphabetical Listing"
