A Dallas oil and gas company that is not even one year old is making some headlines in the Permian Basin where it started making more acquisitions for oil production.
Ellipsis U.S. Onshore, formed in June 2023, is considered a newcomer to the Delaware Basin which makes up the western part of the Permian. It acquired 3,000 non-operated acres in the Delaware with production of about 3,000 barrels of oil equivalent a day. The production was expected to grow to 7,000 by year’s end.
The Carlsbad Current-Argus reports that Ellipsis started making more acquisitions of oil and gas assets in December in New Mexico and Texas. Ellipsis also has acreage in the Denver-Julesberg Basin of Colorado and the Texas-Louisiana Salt Basin. So the late 2023 acquisitions would double the firm’s production to 6,000 boepd.
“We are agnostic as to basins,” Adam Howard, managing director at Ellipsis, told the Midland Reporter-Telegram in a telephone interview. “We look at every major basin (but) are most successful in the Permian Basin. We made three large deals in the last year.”
He explained that because Ellipsis has a major private equity fund to back it, the best way to deploy the capital is in non-operated assets. And he expects the firm to be just as busy with acquisition opportunities in 2024.
Another company official, Matt Gentry, a managing director, told the newspaper his firm looked at more than 100 deals last year and half were in the Permian Basin.