[Context: On September 14, IOG Capital announced three new development drilling programs located in the Eagle Ford, the Merge portion of the STACK play, and the Arkoma-Woodford totally $130m. The programs include EnCap-backed Earthstone Energy (NYSE: ESTE), Red Mountain Energy, and an undisclosed private company. Further details and related links are below.]
IOG Capital Announces Joint Development Drilling Programs in Eagle Ford, Merge, and Arkoma-Woodford Requiring up to $130 Million of Capital
DALLAS–September 14, 2017–(BUSINESS WIRE)–IOG Capital, LP (“IOG” or the “Firm”) announced today three new development drilling programs located in the Eagle Ford, the Merge portion of the STACK play, and the Arkoma-Woodford, respectively. These three new projects are anticipated to require up to $130 million of gross capital to fund well-defined, diversified, drill ready development programs. These projects will be conducted through IOG’s newly formed affiliate, IOG Resources, LLC (“IOGR” or the “Company”).
Founded in 2014 by veteran energy operator Marc Rowland, IOG partners with high-quality E&P operators across multiple North American hydrocarbon basins to fund drilling capital in well-defined development programs. The Company’s project equity partnership model benefits from structural protections including real asset ownership at the wellbore.
IOGR’s first joint development agreement was established in July 2017 with Woodlands, Texas based Earthstone Energy, Inc. (NYSE: ESTE) (“Earthstone” or “ESTE”). IOGR and ESTE will initially partner on the development of 11 Eagle Ford wells located in Gonzales County, Texas in 2017. IOGR has the potential to participate in up to 15 additional wells in the project.
The Company’s second joint development program closed in August 2017 with an Oklahoma City based private family operator that has partnered on several projects with the Firm since 2015. This new development program in the Merge calls for up to 18 wells to be funded in Canadian County, OK.
The third, and most recent development program, closed at the end of August 2017 with Oklahoma City based Red Mountain Energy (“RME”). IOGR and RME will jointly fund up to 20 wells targeting the Woodford in the Arkoma Basin. This is the second time IOG and RME have partnered in a development JV.
The new investments in the Merge and Arkoma-Woodford have increased IOG and its affiliates’ total acreage position in Oklahoma to over 17,000 net acres with over 80% of the position concentrated in the STACK (Dewey, Major, Kingfisher, and Blaine Counties, Oklahoma) and the Merge (Canadian County, Oklahoma). IOG now has a highly diversified portfolio of assets including investments in the Permian, Eagle Ford, Bakken, Marcellus, and Arkoma-Woodford areas.
IOG’s Founder and Senior Managing Director, Marc Rowland stated, “We are very excited to work with what we believe are top-tier operators and partner to help them achieve their development plans.”
Mr. Rowland further remarked that, “IOGR remains committed to providing mutually beneficial project-based solutions to capable operators with exceptional assets, requiring between $25-150 million of development capital.”
About IOG Capital, LP
Founded in 2014, IOG Capital, LP is a Dallas, Texas-based energy investment firm that manages oil and gas assets. The Firm seeks to invest in diversified upstream oil and gas development projects located onshore in the United States through joint development, and traditional joint operating agreements. IOG substantially expanded its capital sources by forming its resource company affiliate, IOG Resources, LLC earlier this year.
As of September 2017, IOG’s team of 17 has deployed over half a billion dollars of capital expenditure in more than 360 oil and gas wells diversified across 23 investments in four states and 22 counties.