HOUSTON--(BUSINESS WIRE)--Hilcorp San Juan, L.P. announced today the closing of its acquisition of the San Juan Basin assets from ConocoPhillips. The 1.3 million net acres purchase instantly places Hilcorp Energy amongst the top producers in the San Juan Basin. The company believes the assets are teeming with opportunity to profitably grow production.
“With the acquisition now complete, Hilcorp can start doing the technical work required to increase production in New Mexico and Colorado, just as we’ve done in other areas of the country,” said Jason Rebrook, President and Chief Development Officer. “Throughout this entire process, we’ve identified significant potential remaining in the base assets as well as in the Mancos Shale.”
Hilcorp has a long track record of developing assets acquired from major oil and gas producers. While other companies have reduced their exposure to traditional, conventional assets, Hilcorp has become a leader in extending and improving the production lives of these assets through expertise, innovation and efficient operations. This entry into the San Juan Basin is a natural extension of Hilcorp’s business model.
“Hilcorp sees decades of future production and development in the basin. We are excited for the opportunity to enhance oil and natural gas production in the Four Corners Region, and we expect to become responsible members of the local community by boosting economic activity and developing strong, long-lasting partnerships,” said Greg Lalicker, President and Chief Operations Officer.
The assets purchased by Hilcorp currently produce ~120,000 BOED with a decline rate of 7% annually. Hilcorp’s immediate goal will be to take over operations from ConocoPhillips in a safe and environmentally responsible manner. Concurrently, efforts will begin to stabilize the production from these assets. Workover rigs will be deployed to the San Juan Basin in the near-term to begin working on existing wells.
Hilcorp San Juan, L.P. is a partnership between Hilcorp Energy Company and The Carlyle Group.
Hilcorp, founded in 1989, is one of the largest privately held independent oil and natural gas exploration and production companies in the United States. Hilcorp is consistently ranked as one of the top places to work in America by multiple regional and national publications. Headquartered in Houston, TX, with over 1,500 employees, Hilcorp has operations across the United States including the Gulf Coast of Texas and Louisiana, Wyoming, Northeast U.S. and both the Cook Inlet and North Slope of Alaska.
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $162 billion of assets under management across 287 investment vehicles. Carlyle’s purpose is to invest wisely and create value on behalf of its investors. The Carlyle Group employs more than 1,550 people in 31 offices across six continents.