Bison Oil and Gas Partners II, LLC in Denver announced the closing of a $155 million loan with Varde Partners, a global alternative investment firm.
Bison plans to use the proceeds to fund its ongoing drilling program and expansion of its rural asset base in the Denver-Julesburg Basin. It will also use some of the funds to repay existing debt and provide a distribution to Bison’s equity holders.
Varde is based in Houston while Bison currently operates more than 20 wells across its approximately 50,000 net acre position in northeast Weld County, Colorado. Bison’s horizontal wells drilled to date, which cost approximately $5 million to drill and complete, have achieved average 30-day peak production rates of 125 barrels of oil equivalent per day, per thousand lateral feet (~80% oil).
Värde Partners’ Houston-based energy team focuses on credit, equity and structured asset-level investments to provide tailored capital solutions to fit the needs of an evolving industry. Värde has invested nearly $1 billion in structured and asset-level energy solutions in the last three years.