Kalnin Ventures Signs Sixth Marcellus Shale Acquistion
$105 Million Deal Makes Kalnin Most Active Fund in Marcellus in 2017
DENVER (Dec. 12, 2017) – Kalnin Ventures LLC (“Kalnin”) today announced that an affiliate of its BKV Oil and Gas Capital Partners, LP fund (the “Fund”), has entered into Purchase and Sale Agreements with respect to the Fund’s sixth acquisition in thirty months in the Northeast portion of the Marcellus Shale with an expected closing date by the end of December 2017.
The Fund is financially backed by its sole investor, Banpu Pcl, a Thailand-based coal mining and power-generation company with total assets of approximately $7 billion.
The transaction with Warren Resources, Inc. includes Warren’s entire Northeast Marcellus position and is valued at $105 million, with potential of two additional payments of $3.75 million each over the next two years, depending on natural gas prices. This acquisition takes the Fund’s acquisition tally up to $522 million invested in the Marcellus to date.
Located in Pennsylvania’s Wyoming County, the assets provide Kalnin with solid operating cash flow from 35 producing wells, with strong additional development potential in the supercore of the Northeast Marcellus through another 23 proven and undeveloped (PUD) well locations in the lower Marcellus. Total 1P reserves for the acquisition are estimated at 292 BCF.
Upon completion of this transaction, the Fund will operate over 115 producing wells and have interests in 330 gross wells across of over 60,000 net acres across in its portfolio. These transactions provide the Fund with projected net natural gas production of over 200 million cubic feet per day.
“This deal is perfectly synergistic with our previous deals in Wyoming County, Pennsylvania and allows us to integrate two separately operated fields into a single larger field that is more efficient and at scale,” said Christopher Kalnin, Managing Director and Co-founder of Kalnin Ventures LLC. “We continue to consolidate and expand our working interests in this region, as we believe in the long-term outlook for gas, especially in the conjunction with growth in renewables,” said Kalnin.
The acquisition follows the Fund's previous transactions with Carrizo (Marcellus) LLC and Reliance Marcellus II, LLC; Zena Energy LLC; Radler 2000 LP - Tug Hill Marcellus, LLC; Chief Exploration and Development LLC; and Range Resources - Appalachia, LLC, all located in the productive Marcellus Shale.
About Kalnin Ventures
Kalnin Ventures is a values‐driven firm that believes that the combination of visionary strategy, focus on execution, and balance in day‐to‐day life are the keys to creating long‐term sustainable value.
Kalnin Ventures is backed by investors with equity fund commitments of $500 million within its oil and gas fund BKV Oil and Gas Capital Partners, L.P. The company seeks to invest in attractive upstream oil and gas opportunities in North America with the goal of creating long‐term sustainable value in the energy industry. More information is available at www.kalninventures.com.
Banpu Public Company Limited is listed on the Stock Exchange of Thailand and is one of the energy leaders in the Asia-Pacific region with widespread experience in a variety of domestic and international energy industries. Banpu is focused on developing and investing in coal, power generation and alternative energy, with investments located in Thailand, Indonesia, China, Australia, Lau PDR, Mongolia, Singapore, Japan and the United States. More information is available at www.banpu.com.
AdvisorsWillkie Farr & Gallagher LLP acted as legal advisor to Kalnin Ventures. UBS Investment Bank acted as financial advisor to Warren Resources and Harris, Finley & Bogle, PC acted as legal advisor to Warren Resources.
April Lynch, Pennebaker
Phone: 1+ 713‐922‐1895