Dallas-based IOG Capital LP, which has an array of partnerships in the U.S. onshore to develop conventional and unconventional assets, said Thursday it has invested in three new drilling projects, one in the Eagle Ford Shale and two in Oklahoma.
The projects, expected to require up to $130 million, would be conducted through newly formed affiliate IOG Resources LLC (IOGR).
“We are very excited to work with what we believe are top-tier operators and partner to help them achieve their development plans,” said CEO Mark Rowland.
Before founding IOG Capital in 2014, Rowland was CFO at Chesapeake Energy Corp., a position he held for 18 years. He left in 2010 to become CEO of Frac Tech Services LLC, now FTS International Inc.
In the first new joint development agreement (JDA), an Eagle Ford drilling program in South Texas was established in July with Earthstone Energy Inc., headquartered in The Woodlands north of Houston. The partners initially plan to develop 11 wells this year in Gonzales County. IOGR also may participate in up to 15 additional wells.
The second JDA, completed in August, is with an undisclosed, privately held Oklahoma City-based operator with which IOG has participated since 2015. The partners plan to drill up to 18 wells in the Merge play in Oklahoma’s Canadian County. The Merge trend is within the STACK, aka, the Sooner Trend of Anadarko Basin, mostly in Canadian and Kingfisher counties.
The third JDA, reached at the end of August, is with Oklahoma City-based Red Mountain Energy. Under the agreement, the second by the partners, plans are to jointly fund up to 20 wells targeting the Woodford Shale in Oklahoma.
IOG said it has closed to date 23 investments in four states covering 20 counties and more than 359 wells. It also has investments in the Permian Basin and in the Bakken and Marcellus shales. Among other things, IOG now partners with Seneca Resources Corp. in northern Pennsylvania.
Including the two new agreements, Oklahoma investments now cover more than 17,000 net acres, mostly covering assets in the STACK. IOG’s holdings are concentrated in Dewey, Major, Kingfisher, and Blaine and Canadian counties.