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UPSTREAM “The principals of North Hudson have been targeted to begin in the fourth quarter of this
valuable partners since 2016 and bring the year.
Fortuna Resources III financial insight, resources, and investment opportunities to provide our investors with
“Our team is always looking for
experience to help us maximise the value of
partners with North Hudson our growing asset base.” high quality projects,” said Jordan Jayson,
Chairman and CEO, US Energy. “We have
Travis Pace, President of Fortuna, added,
to fund Permian Basin “Fortuna has developed a reputation as a historically found great success in the Permian
Basin and look forward to further expanding
reliable and efficient partner for Delaware
non-operated oil and gas Basin operators and we look forward to our footprint in the area.”
The Permian Basin is one of the oldest
continuing to provide flexibility to companies
investments to optimize their capital budgets and and most widely recognised oil and gas
producing regions in North America. It covers
development plans.”
Fortuna Resources III announced the “We are excited to build upon our approximately 86,000 square miles across New
expansion of its partnership with additional partnership with the Fortuna team,” said Mark Mexico and Texas. The Permian is divided
equity commitments from North Hudson Bisso, managing partner of North Hudson. into three main sub-basins: Midland Basin,
Resource Partners and its affiliates. Fortuna “The Fortuna team has extensive regional Central Basin, and Delaware Basin.
was formed and funded in October 2019 A&D experience, strong technical expertise, In 2019, US Energy acquired a large
and has acquired interests or participated in and long-standing industry relationships operated position in neighbouring Ward
the drilling of approximately 100 horizontal which are critical as we continue to pursue County, Texas and is currently developing
wells to date with top-tier Delaware Basin Fortuna’s acquisition and development three horizontal Wolfcamp wells with plans to
operators. strategy.” deploy $40mn in the project by year-end.
Fortuna is a Houston-based oil and FORTUNA RESOURCES III, September 16, 2020 US ENERGY DEVELOPMENT CORPORATION,
gas company focused on acquiring and September 16, 2020
participating in non-operated working US Energy Development
interests with top-tier operators in the Whiting Petroleum
Permian Basin. Fortuna intends to utilise Corporation announces
its additional commitments to continue its announces 2020 guidance
growth strategy, including funding additional $8.5mn co-development in
acquisitions and its ongoing drilling and organisational changes
programme. the Permian shale
Fortuna’s management team has extensive to better position the
history in the Permian Basin including two US Energy Development Corporation, an
prior partnerships with North Hudson. exploration and production (E&P) firm company for 2021
Fortuna’s CEO, Aaron Davis, previously which provides direct investments in energy,
worked with Occidental Petroleum announces the firm has acquired an interest Whiting Petroleum announced today that it
Corporation where he oversaw multiple in a horizontal well development project in has evaluated and reduced its cost structure
Permian Basin drilling and development Loving County which is located in West Texas. to better align Whiting’s business with the
programs. Fortuna’s regional experience and The firm’s $8.5mn interest in the Columbia current operating environment. The company
in-house expertise allow it to assess and close project, whose total development cost is is also updating its 2020 guidance to reflect an
transactions efficiently to accommodate the $24.1mn, will include three horizontal wells in increased focus on capital discipline.
time pressures associated with operators’ well the Permian Basin. The development, which Whiting recently implemented a new
election decisions. targets oil producing zones in the Wolfcamp organizational structure whereby the
“We are pleased to be expanding our shale, is being operated by Shell Oil Company. company has reduced its total workforce
on-going partnership with North Hudson Drilling and completion operations on the by 16%, of which over 90% were corporate
with our Fortuna platform” said Aaron Davis. project are finished and initial production is positions. Whiting expects these changes to
the organisation to generate approximately
$20mn in annualised cost savings. In
conjunction with the reorganisation, Whiting
is reducing the compensation of its officers
by 15% to 20%, realigning officer bonus
programs, reducing the number of corporate
executives, and initiating salary reductions
across a broad group of employees. The full
impact of these G&A reductions is expected
to be realised in 2021, while the effect in 2020
is largely expected to be offset by related one-
time charges.
As the company has emerged from
restructuring and is responding to the current
environment, it is updating its guidance for
the second half of 2020.
WHITING PETROLEUM, September 16, 2020

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