Oklahoma City’s based Valorem Energy, LLC has closed on its acquisition of LINN Energy, Inc.’s Williston Basin interests in a $285 million deal.
Backed by Kayne Private Energy Income Fund, L.P., the fledgling independent oil and natural gas company purchased nearly 20,000 net acres in North Dakota, South Dakota and Montana. It includes an estimated third quarter net production of 8,750 barrels of oil equivalent a day. The sale has an effective date of March 1, 2017.
“We are excited to announce our first acquisition since forming Valorem earlier this year. I am very proud of the team’s accomplishments thus far, and we are thrilled to own such high-quality assets. We believe this acquisition provides us with an initial building block to our long-term strategy of operating large oil and gas assets and achieving superior returns for our investors,” commented Justin Cope, Chief Executive Officer of Valorem.
The company was founded earlier this year and with more than $1 billion in capital, its intent is to acquire and operate large, producing onshore U.S. oil and gas assets. Its emphasis of operations will be ni the Rockies and Mid-Continent.
Danny Weingeist, Managing Partner at Kayne Anderson, said, “We are proud of the Valorem team and believe the assets are a great fit for both Valorem’s and the Fund’s strategies. We look forward to working with Valorem to deploy additional capital.”