Private equity firm OneRock Energy is adding a sizable position in the Powder River Basin in a deal to buy E&P Northwoods Energy.
Houston-based OneRock Energy Holdings LLC agreed to acquire Northwoods Management Co. and certain related entities for an undisclosed sum, the firm announced in a June 28 news release. Northwoods is backed by investment firm Apollo Global Management.
Once closed, the Northwoods acquisition will add more than 160,000 largely contiguous net acres of leaseholds interests spanning Converse, Campbell and Johnson counties, Wyoming.
OneRock, which serves as the upstream investment arm of Houston-based energy investment firm Pan Capital Management, said the acquired assets include average production of approximately 5,000 boe/d.
RELATED
Powder River Basin: In the Zone
Daniel Fan, partner and head of North American E&P investments at Pan Capital Management, said the firm expects to leverage the OneRock platform to acquire more oil and gas assets for future expansion.
“We consider this acquisition to be a pivotal move for OneRock, solidifying our position with a robust presence in resource-rich unconventional plays,” Fan said in the release. “It represents a crucial component of our growth strategy into the E&P business, while concurrently expanding our commodity optionality and seamlessly aligning with Pan Management’s overarching investment strategy.”
The deal, subject to customary closing conditions, is expected to close during the third quarter.
OneRock was represented by Willkie Farr & Gallagher LLP as legal adviser.
With Apollo’s financial backing, Northwoods added more than 112,000 acres in the Powder River Basin through a $500 million acquisition from SM Energy Co. in 2018. The deal represented around 80% of SM’s Powder River acreage at the time.
RELATED
SM Energy’s Powder River Basin Bulk Sale Captures Premium Price
Recommended Reading
Ohio Oil, Appalachia Gas Plays Ripe for Consolidation
2024-04-09 - With buyers “starved” for top-tier natural gas assets, Appalachia could become a dealmaking hotspot in the coming years. Operators, analysts and investors are also closely watching what comes out of the ground in the Ohio Utica oil fairway.
Exclusive: Rockcliff CEO on $2.7B TGNR Deal, Value of Haynesville M&A
2024-04-10 - Rockcliff Energy CEO and President Alan Smith discusses the ups and downs of executing the transaction with TG Natural Resources and what's on the Rockcliff III radar, in this Hart Energy Exclusive interview.
An Untapped Haynesville Block: Chevron Asset Attracts High Interest
2024-04-03 - Chevron’s 72,000-net-acre property in Panola County, Texas is lightly developed for the underlying Haynesville formation — and the supermajor may cut it loose.
Aethon Cuts Rigs but Wants More Western Haynesville Acreage
2024-03-31 - Private gas E&P Aethon Energy has drilled some screamers in its far western Haynesville Shale play—and the company wants to do more in the area.
The Answer to Curbing Permian Associated Gas? More M&A
2024-04-03 - Consolidation will result in less oil production, and therefore less associated gas, as fewer wells are produced, an energy analyst says.