TULSA, Okla., April 19, 2018 /PRNewswire/ — Canyon Creek Energy – Arkoma, LLC (“CCEA”) announced today that it has entered into a Joint Development Agreement (“JDA”) with Pivotal Petroleum Partners II, LP (“Pivotal”) to jointly fund the development of wells on CCEA’s acreage in Atoka, Coal, Hughes and Pittsburg Counties, Oklahoma, targeting the stacked pay formations in the expanding Arkoma STACK play.
CCEA and Pivotal plan to drill 18 wells in 2018 targeting the Woodford shale and Mayes shale in various locations throughout the Arkoma Basin of Southeastern Oklahoma. Pivotal will fund 75% of CCEA’s working interest in all wells covered by the JDA. Once Pivotal achieves a preferred return, the majority of the wellbore working interest and net revenue interest will revert back to CCEA. This new partnership will accelerate CCEA’s drilling activity across the company’s 100,000 gross acre operated leasehold position.
CCEA President & CEO Luke Essman commented, “We are excited to partner with Pivotal to continue delivering competitive investment returns within our Arkoma STACK acreage. Their investment signals the industry’s renewed interest in developing the Arkoma’s world class rock.”
“We are extremely excited to have the opportunity to partner with CCEA to develop its Arkoma STACK leasehold position,” said Billy DeArman, Principal at Tailwater Capital. “The CCEA partnership allows Pivotal to deploy capital into wells with compelling rates of return alongside a highly respected operator in the basin.”
Kirkland & Ellis, LLP acted as legal advisor for CCEA. The Kirkland team was led by corporate partners Rahul Vashi and Shubi Arora and associate Lindsey Jaquillard, and tax partner Mark Dundon and associate Joe Tobias.
Thompson & Knight, LLP (“T&K”) acted as legal advisor for Pivotal. The T&K team was led by oil and gas partner Robert Dougherty and associate Kelli Sims, and tax partner Brandon Bloom and associate Jana Wight.
About vortus investment advisors
Vortus Investment Advisors is a Fort Worth-based private equity firm focused on the lower to middle market upstream energy industry in North America. Vortus has an asset-based investment strategy, targeting privately negotiated transactions in the lower to middle market requiring approximately $50 million to $75 million of equity capital in partnership with successful owner/operators. For additional information, visit www.vortus.com.
About pivotal petroleum partners
Pivotal is a Dallas, Texas-based oil and natural gas company focused exclusively on acquiring non-operated working interests in oil and liquids-rich basins. Pivotal seeks to grow its assets through the acquisition of non-operated working interests and leasehold positions alongside best-in-class exploration and production companies as well as through participating in drilling partnerships and joint ventures with select oil and gas companies. Pivotal is backed by a funding commitment from Tailwater Capital, LLC. For more information, please visit: www.pivotalpetro.com.
About tailwater capital
Dallas-based Tailwater Capital is a highly specialized, growth-oriented energy private equity firm with a well-established track record, having executed more than 65 energy transactions in the upstream and midstream sectors representing over $16.6 billion in transaction value. Tailwater currently manages over $2.3 billion in committed capital, over $800 million of which is available for new investments. Tailwater is focused on acquiring and growing midstream assets as well as participating in non-operated upstream opportunities in select basins. For more information, please visit: www.tailwatercapital.com.
Canyon Creek Energy