A pair of independent producers, Chisholm Oil and Gas of Oklahoma, and Gastar Exploration of Houston, which exited Chapter 11 just five months ago, announced Wednesday they’re merging, Kallanish Energy reports.
No pricetag was placed on the deal. The combined company, which will operate under the name Chisholm Oil and Gas and be headquartered in Oklahoma, will have net production of roughly 20,000 barrels of oil-equivalent per day (Boe/d), and a combined acreage position of approximately 165,000 net acres, primarily in Kingfisher County, Oklahoma, in the Stack play.
Chisholm believes the Gastar assets will be synergistic to its upstream operations, as well as to Chisholm’s ownership stake in Great Salt Plains Midstream Holdings and its wholly-owned salt water disposal subsidiary, Cottonmouth SWD.
Chisholm was formed in 2017 with backing from funds managed by certain affiliates of Apollo Global Management and company management. Gastar is owned through private equity funds affiliated with Ares Management Corp.
The transaction is expected to close by Oct. 1, 2019.
Chisholm was advised by Citigroup as financial advisor, and Vinson & Elkins and Paul, Weiss, Rifkind, Wharton & Garrison, as legal advisors.
Evercore and Tudor Pickering Holt & Co. provided financial advisory services to Gastar, and Kirkland & Ellis served as legal advisor.
This post appeared first on Kallanish Energy News.