If you’re a shale gas producer in the market for sweet-to-the-core Northeast assets, look no further than investment firms Tug Hill and Quantum Energy Partners. And bring a fat wallet cause these folks are exploring a sale of more than $5 billion.
Reese Energy Consulting today is following the latest news from the Texas-based partnership and their THQ Appalachia that includes Tug Hill Operating. With current production of 760 MMCFD across the Marcellus, Utica, and Upper Devonian plays, the portfolio company was formed in 2007 and has since drilled or participated in more than 850 wells. Both Tug Hill and Quantum funded the startup in 2014 with equity commitments of $450 million each.
You might recall in January Okla. City-based Chesapeake picked up Marcellus operator Chief E&D, which came along with associated non-operated interests held by Tug Hill for a total $2.5 billion. That deal included 113,000 net acres with more than 90% held by production of 200 MMCFD.
As a bonus, the Tug/Quantum sales package also includes the option to buy XcL Midstream for a few multi-million dollars more. XcL is led by Tug Operating’s CEO and offers both lean and rich gas gathering systems with connections to processing facilities and interstate pipelines.