In total, the two BCE-Mach partnerships have acquired 365,000 net acres spanning the Mississippi Lime, Stack, Merge, Scoop and Western Anadarko Basin. Pictured oil pumps in storage in the Texas Panhandle. (Source: Shutterstock.com)
Mach Resources LLC, the independent oil and gas producer led by industry veteran Tom Ward, entered the Western Anadarko Basin with two acquisitions on July 15.
The acquisitions represent the first transactions within a new partnership between the Oklahoma company and Houston-based private-equity firm Bayou City Energy Management LLC (BCE) named BCE-Mach II LLC. The pair previously formed BCE-Mach LLC in early 2018 to focus on the development of Mississippi Lime assets across Oklahoma and Kansas.
Ward said Mach’s new partnership with BCE will allow the company to expand its strategy into the Anadarko Basin starting with the two initial acquisitions comprised of producing properties in Western Oklahoma and the Texas Panhandle.
Throughout his career, Ward has formed and led several oil and gas companies including shale pioneer Chesapeake Energy Corp., which he co-founded in 1989 alongside Aubrey K. McClendon. He also went on to start SandRidge Energy Inc. in 2006 and Tapstone Energy LLC in 2013.
Ward formed Mach Resources in January 2017 to pursue “high-return, low-cost” projects. BCE, led by Will McMullen and Mark Stoner, agreed to link up with Ward’s Mach Resources in March 2018 to initially acquire, explore and develop oil and gas assets in Oklahoma and Kansas.
“Mach looks forward to continuing its partnership with BCE via BCE-Mach II with a focus on acquiring proven cash flow using low leverage as opposed to the industry standard of solely relying on growth at all costs through the drill bit,” Ward said in a statement on July 15.
On July 15, BCE-Mach II agreed to acquire the Western Anadarko properties in separate transactions with different unnamed sellers. The terms of either agreement, both expected to close in September, were not disclosed.
The first agreement included assets in Beckham, Custer, Dewey, Roger Mills and Washita counties, Okla., and Hemphill and Roberts counties, Texas. Meanwhile, the second agreement is comprised of properties across 32 counties in Oklahoma and seven counties in Texas.
Mach’s first partnership with BCE will continue to own, operate and acquire properties in the Mississippi Lime, according to the company press release.
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McMullen, BCE founder and managing partner, said he sees the role of the two BCE-Mach partnerships as a consolidator in the Midcontinent region.
Upon closing its initial Western Anadarko acquisitions, the two BCE-Mach partnerships will have closed on five transactions spanning the Mississippi Lime, Stack, Merge, Scoop and Western Anadarko Basin plays.
In total, McMullen said these assets represent 365,000 net acres, which are 98% HBP. Production is roughly 30,000 net barrels of oil equivalent per day, 49% liquids, he added.
“We believe that excellence in operations combined with an under-levered balance sheet and future sponsorship support will continue to drive our ability to be a regional consolidator,” McMullen said in a statement on July 15. “And we look forward to achieving this end with Tom Ward’s team.”
Emily Patsy can be reached at epatsy@hartenergy.com.
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