![IOG Buys Sequel Energy’s Utica Interests in Strategic Shift](/sites/default/files/styles/hart_news_article_image_640/public/image/2021/03/iog-buys-sequel-energys-utica-interests-strategic-shift.jpg?itok=JPnVKsUb)
IOG Capital reported in early March that it had closed an Ohio Utica acquisition of working interest in producing horizontal wells operated by Southwestern Energy and Ascent Resources. (Source: Shutterstock.com)
IOG Capital LP has substantially increased its presence in the Utica Shale through the purchase of nonoperated wells from an affiliate of Sequel Energy Group LLC.
The firm’s IOG Resources LLC reported in early March that it had closed an Ohio Utica acquisition of nonoperated working interests in 77 producing horizontal wells operated by Southwestern Energy Co. and Ascent Resources LLC. Production averaged about 75 MMcfe/d (85% gas) as of the Jan.1 effective date.
In 2018, IOG made an initial investment in Belmont County, Ohio, in 10 wells. It followed the next year with two Guernsey County wells.
The March transaction keeps with IOG’s shift from development capital projects to acquisitions of nonoperated PDP assets, the firm said in October.
The seller, Sequel Energy, is a private, Denver-based company that targets nonoperated oil and gas interests throughout the lower 48. The company was formed in 2016 by GSO Capital Partners LP, the credit platform of Blackstone.
IOG Capital is an investment firm based in Dallas that manages oil and gas assets. As of July 2019, IOG has closed over 32 transactions across 7 states, 28 counties, and has invested in more than 500 wells, according to its website.
Kirkland & Ellis LLP acted as legal counsel for IOG. Sequel was advised on the sale process by RBC Richardson Barr and Welborn Sullivan Meck & Tooley acted as legal counsel.
Recommended Reading
Nabors’ High-spec Rigs Help Keep Lower 48 Revenue Stable in 2Q
2024-07-25 - Nabors’ second quarter EBITDA was down 1% quarter-over-quarter but the company sees signs of increased drilling activity in international markets the second half of the year.
Crackin’ It at Kraken: Inside the Bakken’s Ramped-up Private E&P
2024-07-24 - Kayne Anderson-backed Kraken Resources is producing more than 80,000 boe/d today and has a new Fitch Ratings credit score to take to the M&A bank.
CNOOC Encounters High Yield Well in Beibu Gulf
2024-07-23 - CNOOC’s well was tested to produce over 1,000 cu. m/d of oil equivalent, making it the first well of such productivity in the Wushi Sag area.
Permian Basin Coalition Highlights Philanthropic Investments
2024-07-23 - Since 2019, the Permian Strategic Partnership has doubled its membership and used philanthropic investments to generate more than $1.5 billion in community support and collaborative investment.
E&P Highlights: July 22, 2024
2024-07-22 - Here's a roundup of the latest E&P headlines, with LLOG acquiring 41 blocks in the Gulf of Mexico and Saipem securing $500 million in contracts from Saudi Aramco.