Denver energy company expands its holdings in San Juan Basin

 

While Williams of Tulsa is getting out of the San Juan Basin and the Four Corners oil and gas area, DJR Energy LLC based in Denver is entering the play in a big way.

DJR Energy announced it has agreed to acquire Encana Corporation’s San Juan Basin assets which include 182,000 net acres. Combined with what DJR currently holds, it will expand the company’s holdings to more than 350,000 acres focused in the oil window of the Basin.

DJR will have production of more than 6,000 barrels of oil equivalent a day once the acquisition is final. It will also hold an inventory of more than 1,100 high value drilling locations.

The company said those drilling locations already boast “breakevens competitive with other premier oil basins.”

“Our entire management team is very excited to acquire this world class asset from Encana, who has been a fantastic operator. We are now poised to become a dominant player in the San Juan Basin as we combine their asset with our existing footprint and focus our efforts on further developing our acreage,” said Dave Lehman, President and CEO at DJR.

Trilantic North America is the private equity firm that helped back the purchase by DJR.

“We at Trilantic North America are thrilled to be partners with Dave and the exceptional team at DJR. This investment combines a world class asset with a world class management team. We are excited to further unlock the potential of the San Juan Basin,” commented Glenn Jacobson, Partner of Trilantic North America.

His firm manages six private equity fund families with aggregate capital commitments of $9 billion.  It’s already committed nearly $4.1 billion in capital across 27 energy investments.

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