Chisholm Oil & Gas LLC, Tulsa, and Gastar Exploration LLC, Houston, have agreed to merge. The combine—Chisholm Oil & Gas—will be based in Tulsa and have net production of 20,000 boe/d and a combined acreage position of 165,000 net acres, primarily in Kingfisher County, Okla.
Chisholm is currently running three rigs and has a dedicated frac crew. Gastar’s assets will be synergistic to upstream operations as well as to Chisholm’s ownership stake in Great Salt Plains Midstream Holdings LLC and its wholly owned salt water disposal subsidiary, Cottonmouth SWD LLC, the companies said.
Chisholm, formed in 2017 with backing from funds managed by Apollo Global Management LLC affiliates, is owned through private equity funds affiliated with Ares Management Corp. The company is focused on acquiring and developing oil and gas assets throughout the STACK play in Blaine, Canadian, Kingfisher, Logan, and Major Counties, Okla.
Gastar’s Midcontinent assets in the STACK Play in Oklahoma, which includes the Hunton Limestone, Meramec Shale-Mississippi Lime, Woodford Shale, and Osage and Oswego formations. Gastar Exploration Inc. emerged from Chapter 11 as privately held Gastar Exploration LLC in November 2018 (OGJ Online, Jan. 23, 2019).
The transaction is expected to close in this year’s third quarter, subject to closing conditions.