Chisholm Energy Holdings LLC, a Fort Worth-based start-up oil and gas company backed by Warburg Pincus, on Dec. 7 announced that it has signed a definitive agreement to acquire developed acreage from Resource Rock Exploration LLC, an oil and gas company backed by Kayne Anderson Energy Funds.
The acreage, which contains multiple horizontal reservoir targets in the Bone Spring and Wolfcamp Formations, is located in Eddy County in the New Mexico Delaware Basin. The transaction is expected to close in January 2018. Terms of the transaction were not disclosed.
The newly acquired asset adds to Chisholm’s existing position, giving the oil and gas firm over 30,000 net acres in the New Mexico Delaware Basin when the deal closes. In May 2017, Chisholm closed on its first asset acquisition of acreage located in Eddy and Lea Counties from a private seller. The company is currently running three drilling rigs and is producing approximately 4,000 barrels of oil equivalent per day (BOEPD).
“We are pleased to expand our presence in the Delaware Basin with this acquisition, which adds scale and value to our growing platform in the region,” said Mark Whitley, CEO of Chisholm.
Chisholm was formed in 2016 and is backed by a $500 million line-of-equity commitment from Warburg Pincus, a global private equity firm focused on growth investing.