John S. Herold Inc., the trusted independent research firm, has once again provided OGFJ with updated production data for our periodic ranking of US–based private E&P companies. The rankings provided by Herold are based on operated production only within the United States.
While the company rankings remain unchanged from the October 2007 installment of the OGJ100P, one executive official change has been made. H.G. “Buddy” Kleemeier is now listed as president and CEO of No. 27 ranked Kaiser–Francis Oil Co. Kleemeier is also involved in the management of The Woodlands, Tex.–based Excelerate Energy, which is owned by Kaiser–Francis Oil Co. and the Excelerate Energy management team. Additionally, Kleemeier is the current chairman for the Independent Petroleum Association of America.
While company rankings sit tight at previous spots, activity in the private sector has not waned.
In November, Tulsa, Okla.–based and NASDAQ listed RAM Energy Resources acquired privately–held Ascent Energy Inc. for total consideration of roughly $286 million. Total consideration was composed of $190 million of cash, 18.8 million shares of RAM common stock, and 6.2 million RAM warrants.
According to RAM’s chairman and CEO Larry E. Lee, 74 of Ascent Energy’s employees are joining the new company, which will continue to occupy the Plano, Tex. office of Ascent following the merger.
RAM’s acquisition of Ascent adds 18.6 million barrels of oil equivalent (boe), nearly doubling RAM’s proved reserves, and roughly 3,000 boe/d of current production. In addition, the acquisition adds 83,000 net acres of undeveloped leasehold, a majority of which are in active shale plays.
Ascent’s properties are comprised of both conventional and unconventional oil and natural gas assets namely in south and east Texas, Oklahoma, and Louisiana. In addition, Ascent also owns roughly 84,798 gross acres of unconventional shale gas leases in the Barnett Shale in North Texas, the Woodford Shale and the Caney Shale in Oklahoma, as well as the Devonian Shale in Appalachia.
The fourth quarter of 2007 also saw No. 7 ranked Covington, La.–based LLOG Exploration Co. LLC close the sale of seven oil and gas properties in deepwater Gulf of Mexico to Australia’s Petsec Energy Ltd. for $103.8 million. The agreed total consideration was the result of $110 million less adjustments for the net value of production and costs between Oct. 1 and the closing of the transaction.
The entire purchase price was paid from Petsec’s debt facilities. Six of the gas fields are in production, with the remaining field expected to commence production in December. The acquisition of 36.2 bcfe of gas of independently assessed 2P reserves has more than doubled reserves and production from Petsec Energy’s existing US fields in the Gulf of Mexico.
Merrill Lynch Petrie Divestiture Advisors advised LLOG, the largest private exploration and production company in the Gulf of Mexico in terms of production, on the transaction.
Ram Oil & Gas LLC, a privately–held oil and gas company with proven reserves of nearly six million barrels of oil and over three billion cubic feet of gas, has revamped the company. Owners Allen Mann, president, and James Ryan, COO, recently unveiled the company’s new name, TriDimension Energy LLC, as well a multi–million dollar acquisition.
The company’s primary focus is finding oil in existing fields. As part of this strategy, TriDimension just completed a $7 million acquisition of the shallow rights for the Lake St. John field, a former Exxon property in the Concordia and Tensas Parishes on the eastern border of Louisiana. With the acquisition, TriDimension Energy joins Denbury Resources Inc., the field’s deep rights holder.
In November 2007, TriDimension Energy, through its operating affiliate Axis Onshore LLC, was the fourth largest oil producer in the Monroe District with production in 2007 of 168,000 barrels from 90 wells.
TriDimension Energy is a Dallas–based oil and gas company with operations in Texas, Louisiana, and Mississippi. The company is also one of the top 40 largest onshore oil producers in the State of Louisiana.
OGFJ and John S. Herold will continue to update the information as new production figures become available. Future issues of OGFJ will present news and relevant information regarding individual companies.
