Two days after Christmas, during vacation days that are often marked by a year-end rush to conclude business, Denver-based DJR Energy LLC closed on its acquisition of Encana Oil & Gas (USA) Inc.’s San Juan Basin assets in New Mexico. It paid US$480 million, or as calculated by a Jefferies analyst, $35,000 per flowing barrel of oil equivalent (boe).
DENVER--(BUSINESS WIRE)--DJR Energy, LLC (“DJR” or the “Company”) has closed on the previously announced acquisition of Encana Corporation’s (“Encana”) San Juan Basin assets. Today the Company holds the largest position in the core of the oil window in the San Juan Basin with over 350,000 net acres and an inventory of over 1,100 high value drilling locations boasting breakevens competitive with other premier oil basins. At close of the pending acquisition, DJR will have production of approximately 7,000 barrels of oil equivalent per day and a gas midstream gathering system servicing its assets.
“We look forward to continuing to unlock the potential of the southern San Juan Basin and believe DJR is well positioned as the dominant player in the oil window. Our team has done an excellent job of preparing for the transition and we look forward to commencing drilling operations,” said Dave Lehman, President and CEO of DJR.
DENVER--(BUSINESS WIRE)--DJR Energy, LLC (“DJR” or the “Company”) has agreed to acquire Encana Corporation’s (“Encana”) San Juan Basin assets. The pending acquisition includes approximately 182,000 net acres, and, when combined with DJR’s existing assets, the Company will have a total of over 350,000 net acres focused in the oil window of the San Juan Basin. At close of the pending acquisition, DJR will have production of over 6,000 barrels of oil equivalent per day and hold an inventory of over 1,100 high value drilling locations boasting breakevens competitive with other premier oil basins.
“Our entire management team is very excited to acquire this world class asset from Encana, who has been a fantastic operator. We are now poised to become a dominant player in the San Juan Basin as we combine their asset with our existing footprint and focus our efforts on further developing our acreage,” said Dave Lehman, President and CEO at DJR.
Trilantic Capital Management L.P. (“Trilantic North America”), Waveland Energy Partners, LLC (“Waveland”), and management team members today announced an equity commitment to invest in DJR Energy, LLC (“DJR”), a newly-formed, Denver, Colorado-based exploration and production company focused on developing oil and gas resources of the San Juan Basin of New Mexico. DJR will be led by CEO David H. Lehman, a geologist and entrepreneur with over 40 years of experience in the oil and gas industry, and an impressive track record of value creation in the greater Rockies region.
Initial proceeds from Trilantic North America and Waveland’s equity commitment were used to close the acquisition of assets in the San Juan Basin from a private exploration and development company.