Rocky Mountain producer Caerus Oil and Gas was sold to Quantum Capital Group in two transactions valued at $1.8 billion.
The transactions include Caerus’ upstream and midstream assets spanning the Piceance Basin in western Colorado and the Uinta Basin in eastern Utah. The deals also include the acquisition of Caerus’ asset-backed securities and other liabilities.
Caerus is owned by a private investor group that includes Oaktree Capital Management, The Anschutz Corporation and Old Ironsides Energy.
Piceance Basin
QB Energy, a newly formed Quantum portfolio company, will acquire and manage Caerus’ asset base in the Piceance Basin, where the Company owns approximately 600,000 acres.
QB Energy will be led by industry veteran Roger Biemans, who will serve as President and CEO.
“The Piceance assets represent the largest single asset base on the second largest gas resource in the Americas,” said Biemans. “QB Energy is acquiring a shallow depth production base with a multi-decade repeatable well inventory and intends to employ some of Caerus’ existing skilled workforce to ensure continuity both in the field and in the local communities.”
RELATED
CEO: Berry seeks horizontal drilling opportunities in Uinta Basin
Uinta Basin
KODA Resources, an existing Quantum portfolio company, will acquire the Caerus portfolio of approximately 160,000 acres in the Uinta Basin, the companies announced Aug. 19. KODA will also acquire Caerus’ midstream assets in the Uinta Basin.
“KODA has spent years deciphering the underground intricacies of the Uinta gas window and we believe we are well suited to assume operational management and advance this high-quality production base adjacent to our existing acreage,” said Osman Apaydin, CEO of KODA Resources.
The Uinta Basin has seen increased drilling and consolidation activity this year. In June, SM Energy and Northern Oil & Gas (NOG) joined forces to acquire leading private Uinta producer XCL Resources for $2.55 billion.
NOG will own an undivided 20% interest in XCL valued at $510 million; SM will own the remaining 80% and operate XCL’s assets.
RELATED
After a $2.55 billion deal, NOG and SM want to buy more assets in the Uinta Basin
