Despite the number of banks and private equity firms that have put the kibosh on new oil and gas investments, producers are still finding investment partners eager to play.
Reese Energy Consulting today is following recent news from Quantum Energy Partners that has announced a $500 million commitment to form Bison Oil & Gas IV whose two of three previous iterations focused on the D.J. Basin beginning in 2015. The Denver-based operator and PE firm are new to each other’s company and mark Quantum’s inaugural step into the DJ., which saw several high-dollar deals in 2022—one of which included Bison.
Now flush with cash, Bison IV is poised for a deep dive back into familiar waters with fresh acquisitions there that total 75,000 net acres and 25+ MBOED. The company’s first three iterations, backed by Carnelian Energy Capital, proved a stellar track record of success in the Rocky Mountains. Bison I was one of two D.J.-based acquisitions made in 2016 by Extraction Oil & Gas for a combined $177 million. Bison II and III were both sold last year, with II selling its DJ assets to Civitas for $300 million, and III selling its Bakken assets to an undisclosed buyer. You might recall back in 2021 Civitas was born of the merger between Extraction and Bonanza Creek, and their acquisition of Crestone Peak Resources.