INDUSTRY BRIEFS

Charger Shale Oil Company, Oaktree form $900M Permian Basin JV

Charger Shale Oil Company LLC and funds managed by Oaktree Capital Management LP have formed a joint venture focused on the Permian Basin. Oaktree has pledged $600 million in an initial equity commitment with an additional $300 million runway commitment. Prior to funding, Charger secured more than 40,000 acres in the Delaware Basin using capital sourced from management and investors and has development plans to expand to over 85,000 acres. At full development, the partnership is targeting over 100 horizontal well locations across multiple horizons. Charger is led by certain executives previously employed by Tall City Exploration (TCE). TCE acquired and developed more than 34,500 core acres (and another 48,000 prospective acres) utilizing $245 million of capital. TCE sold these assets for $1.2 billion in two transactions in 2014 and 2015. Charger utilized the investment banking services of Jefferies in the transaction.

White Deer acquires RockPile Energy Services

RockPile Energy Services LLC, a subsidiary of Triangle Petroleum Corp., has been acquired by White Deer Energy. The transaction was concluded on an out of court basis and involved no form of bankruptcy. PJT Partners and AlixPartners served as financial advisors to RockPile. Skadden, Arps, Slate, Meagher & Flom served as legal advisor to RockPile and Locke Lord served as legal advisor to White Deer Energy. One week after White Deer's acquisition of the company, RockPile Energy Services acquired American Well Service LLP (AWS), a Kenmare, North Dakota based workover rig company. Combined with RockPile's existing six workover rigs, Rockpile now has a 12 rig business with a diversified service offering and geographic footprint within the Williston Basin.

Resource Energy enters Stalking Horse agreement with Samson Resources

Resource Energy Can-Am LLC has entered into a stalking horse asset purchase agreement with Samson Resources Company to acquire certain of Samson's North Dakota and Montana properties in the Bakken play. Under the terms of the agreement, the assets will be sold for approximately $75 million (subject to customary adjustments). The assets are being acquired under Section 363 of the Federal Bankruptcy Code. The asset purchase agreement is subject to approval of the United States Bankruptcy Court for Delaware. Denver, CO-based Resource Energy is backed by funds advised by Apollo Global Management LLC.

Bayou City Energy purchases preferred stock in High Mesa

Bayou City Energy's affiliate, BCE-MESA Holdings LLC completed the purchase of preferred stock in High Mesa Inc. High Mesa is a privately held Delaware corporation, of which the common stock is owned by management of High Mesa, and the preferred stock is owned by BCE-MESA and HPS Investment Partners LLC. High Mesa has interests in oil and gas assets, most notably Alta Mesa Holdings LP. BCE-MESA, which is managed by BCE, includes an investment from affiliates of Intervale Capital, a middle-market energy services private equity firm. In connection with this investment, High Mesa appointed BCE founding partner, William McMullen, to its board of directors. Alta Mesa was founded in 1987. The company drilled its first horizontal STACK well in 2012. Within Kingfisher County, Alta Mesa has over 95,000 net acres, is currently producing approximately 16,000 BOE per day and is currently operating four rigs across its position.

Patterson-UTI Energy to acquire drilling technology company

Patterson-UTI Energy Inc. has agreed to acquire Warrior Rig Ltd. and certain related entities. Based in Calgary, Warrior designs, manufactures and services high-spec rig components with a recent focus on top drive technology for improved drilling performance. Patterson-UTI Energy Inc. subsidiaries provide onshore contract drilling and pressure pumping services to exploration and production companies in North America. Patterson-UTI Drilling Company LLC and its subsidiaries operate land-based drilling rigs in oil and natural gas producing regions of the continental United States and western Canada. Universal Pressure Pumping Inc. and Universal Well Services Inc. provide pressure pumping services primarily in Texas and the Appalachian region.

GE Digital acquires Meridium

GE Digital has acquired Meridium Inc., a global provider of asset performance management (APM) software and services. According to GE, the acquisition will help GE Digital accelerate its APM offering and provide a solution to customers that unifies real-time analytics with reliability-centered maintenance best practices. Meridium customers will gain access to GE's deep domain expertise in real-time data management and advanced industrial analytics. In July 2014, GE made an initial investment in Meridium for a 26% stake in the company. The total acquisition, inclusive of the original investment, was executed for an enterprise value of $495 million.

Team Oil Tools acquires Top Notch Energy Services

Team Oil Tools LP has acquired the assets of Top Notch Energy Services Inc. Founded in 2006, Corpus Christi, TX-based Top Notch is a provider of thru tubing, fishing and milling services with operations across the Eagle Ford and Permian Basin markets. Team is focused on the design, manufacture, sale and service of downhole completions and workover products. Team is backed by Intervale Capital, a private equity firm which invests in oilfield manufacturing and service companies.