By: SubContractors USA
Quantum Energy Partners
Experienced veterans in the oil and gas industry have secured over $500 million in funding and have been procuring mineral rights acreage and operational wells in the Denver-Julesburg Basin.
Quantum Energy Partners, headquartered in Houston, and the management team from Bison Oil & Gas, based in Denver, have joined forces to establish Bison IV. This newly formed entity has successfully acquired 75,000 acres of oil and gas mineral rights, along with wells producing more than 25,000 barrels of oil and natural gas equivalents per day, as stated by the companies.
The establishment of Bison IV marks the return of founder Austin Akers to spearhead an active and growth-oriented oil and gas enterprise in Colorado. Akers and the Bison Oil & Gas management team previously sold their assets to Denver-based Civitas Resources (NYSE: CIVI) for approximately $346 million in 2022.
Presently, members of the Bison Oil & Gas management team are engaged in constructing a fresh portfolio of oil and natural gas endeavors in northeastern Colorado and Wyoming.
“We at Bison believe the DJ Basin possesses some of the most economic development opportunities in North America and we appreciate Quantum’s support to facilitate a consolidation of such an opportunity-rich basin,” Akers said in a statement. “Finally, we are excited about the operational scale we have rapidly achieved at Bison IV and look forward to achieving even greater scale through acquisitions and development.”
The sellers of the acreage acquired by Bison IV have not been disclosed.
Quantum Energy Partners was impressed by Bison Oil & Gas’ track record in building operations that attract buyers. Alex Jackson, managing director at Quantum, praised the Bison management as “exceptional entrepreneurs, high-quality operators of unconventional resources, and responsible stewards.”
Jackson stated, “We believe that the current environment presents an attractive opportunity to build a large-scale acquisition and development platform together in the resource-rich DJ Basin.”
The establishment of Bison IV signals a resurgence in smaller-scale oil and gas acquisition activities in northeastern Colorado at the beginning of the year.
Sitio Royalties, based in Denver and specializing in oil and gas mineral rights consolidation, recently announced a $150 million deal to acquire mineral rights in the basin, expanding its territory to 38,000 acres, mainly in Weld County. Sellers involved in that transaction were also not disclosed.
Civitas Resources, following its acquisitions last year to establish a presence in the Permian Basin, has been divesting some assets from its oil and gas portfolio in the DJ Basin. The company aims to sell $300 million worth of non-core properties, primarily consisting of partially owned wells, low-producing wells, and acreage not considered a priority for new drilling.
CEO Christopher Doyle stated during the company’s earnings call last month that Civitas had made progress on its sales, with roughly $100 million in assets sold fetching attractive valuations.
