Page 11 - NorthAmOil Week 37

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NEWS IN BRIEF
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UPSTREAM
North Hudson partners with Split Rock Resources
North Hudson Resource Partners and Split Rock Resources announced the expansion of its oil and gas investment partnership with $140mn in total capital commitments. Split Rock’s objective is to acquire oil and gas assets comprised of non-operated working interests in all phases of the well life-cycle including permitted wells, drilled but uncompleted wells, and producing wells in the DJ Basin.
To date, Split Rock has acquired interests or participated in the drilling of over 190 horizontal wells.
Split Rock will continue to partner with top-tier operators to optimize their capital budgets and the development of their assets in the DJ Basin. The company’s regional experience and in-house expertise allow it
to assess and close transactions efficiently to accommodate the time pressures associated with operators’ well proposal and election decisions. “We are excited about the quality of operators and the opportunity set in the DJ Basin,” stated Split Rock founder and CEO Jake Bailey. “North Hudson is the optimal capital provider and strategic partner to provide the resources to implement our strategy - we are pleased to expand our partnership.”
“The North Hudson investment team has extensive experience investing in the DJ Basin and believes a significant opportunity exists in a direct wellbore strategy given the underlying strong well economics and the current market dislocations,” said Mark Bisso, managing partner of North Hudson. “Mr. Bailey brings considerable experience, resources, and regional relationships that are required to make Split Rock the partner of choice for DJ Basin operators.”
A Kirkland & Ellis LLP team led by partners Shubi Arora and Jhett Nelson advised North Hudson in the formation and expansion of Split Rock Resources.
NORTH HUDSON RESOURCE PARTNERS AND SPLIT ROCK RESOURCES, September 11, 2019
MIDSTREAM
Taproot Energy Partners announces the execution of a long-term crude oil transportation agreement with Bonanza Creek Energy Operating and strategic extension of its midstream infrastructure in the DJ Basin
Taproot Energy Partners announced today that its affiliate, Taproot Rockies Midstream has secured a long-term acreage dedication for crude oil transportation from Bonanza Creek Energy Operating, a subsidiary of Bonanza Creek Energy, a publicly traded crude oil and natural gas producer with a substantial acreage position concentrated in rural, unincorporated Weld County, Colorado within the DJ Basin. In conjunction with Bonanza Creek’s dedication of nearly 70,000 gross acres (subject to Bonanza Creek’s pre- existing dedications), Taproot will extend its existing multi-service midstream system (the Baja System) approximately 35 miles south (the Rattlesnake Extension) to transport Bonanza Creek’s crude oil to Taproot’s Baja
System for re-delivery at Tallgrass Energy Partners’ Buckingham Terminal, with ultimate delivery to Cushing. Delivery to the Buckingham Terminal is expected to provide shipper customers premium pricing for “Niobrara-spec” crude oil barrels (42-degree gravity and below). The Bonanza Creek commercial agreement increases the total acreage dedicated to Taproot’s Baja System to nearly 175,000 gross acres. In addition
to the Rattlesnake Extension, Taproot also intends to construct a truck unloading and storage facility strategically located to provide its producer and marketing customers with
a premium crude oil delivery point in Weld County.
TAPROOT ENERGY PARTNERS, September 16, 2019
LM Energy completes initial
phase of Touchdown crude
oil gathering system in
Northern Delaware Basin
LM Energy Holdings, formerly known
as Longhorn Midstream Holdings, today announced the completion of Phase I of its Touchdown crude oil gathering system in the Northern Delaware Basin. The pipeline system will begin transporting crude oil in October for certain contracted customers in Eddy County, New Mexico.
As part of Phase II of the project, LM Energy is extending the Touchdown Crude Oil Gathering System and constructing the Touchdown Gas Gathering System. Based upon current contractual commitments, the combined systems will include a total of more than 100 miles of low-and high-pressure pipelines. Phase II of the Touchdown systems will begin operations in the first quarter of 2020 and serve multiple customers dedicated to both the crude oil and gas gathering systems.
“With the increase in drilling activity and production growth in our focus area, we are well positioned to serve current and future customers,” said Elliot Gerson, Managing Partner of LM Energy. “We are constructing our systems with new large diameter pipelines purpose-built for modern well performance. The high-rate-of return drilling, with oil- weighted economics and associated gas, is the ideal environment for a crude oil and natural gas midstream provider.”
Mike Davis, managing partner, added “We are excited about the rapid growth LM Energy has experienced in the Permian Basin, and
we remain committed to providing a broader
Week 37 17•September•2019
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