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US: Chisholm Energy Holdings announces acquisition in the New Mexico Delaware Basin
18 May 2017
Chisholm Energy Holdings, a start-up oil and gas company, has closed on the acquisition of its first asset, located in the New Mexico region of the Delaware Basin. The asset, located in Eddy and Lea counties, includes a substantial amount of highly attractive undeveloped acreage with multiple targets in the Bone Spring and Wolfcamp formations. The asset was acquired from a private seller. Terms of the transaction were not disclosed.
Formed in May 2016 and headquartered in Fort Worth, Texas, Chisholm is focused on the northern Delaware Basin. Chisholm is backed by a $500 million line-of-equity from Warburg Pincus, a global private equity firm focused on growth investing.
Chisholm intends to pursue unconventional resource opportunities where it can leverage its horizontal drilling and completions expertise. The Company is led by Chief Executive Officer Mark Whitley, who since 2014 had served as an advisor to Warburg Pincus. Prior to this affiliation, Mr. Whitley had a long and successful career in the industry, most recently as Senior Vice President of the Southwest Division of Range Resources Corporation. While at Range, he assembled a more than 100,000 net acre position in the Barnett Shale and subsequently led Range's initial efforts in both the liquids-rich and dry gas portions of the Marcellus Shale.
Mr. Whitley is joined at Chisholm by a senior team with a strong track record of industry-leading operating performance. This team includes industry veterans Mike Middlebrook, Chief Operating Officer; Aaron Gaydosik, Chief Financial Officer; Martin Emery, Senior Vice President – Geosciences; Andrew Tullis, Vice President – Engineering; Brad Grandstaff, Vice President – Operations; and Scott Herstein, Vice President – Business Development. The team has deep operating experience in multiple unconventional plays across the United States, including the northern Delaware Basin.
Mr. Whitley commented, 'We are excited to be building a new enterprise focused on the Delaware Basin of New Mexico, where we continue to see many untapped and compelling opportunities. We are pleased to have partnered with Warburg Pincus and to have their support behind our ongoing efforts.'
James R. Levy, Managing Director, Warburg Pincus, said, 'Having known Mark for several years, we are highly confident in his and the entire Chisholm team's ability to create value through their considerable drilling and completions expertise. We look forward to supporting them as they pursue their strategy.'
Source: Chisholm Energy Holdings