Venture will develop Ellis County, OK assets
EOG Resource (ticker: EOG) and The Carlyle Group (ticker: CG) announced today a $400 million joint venture to develop EOG assets.
In this venture the Carlyle Energy Mezzanine Opportunities Fund II will provide up to $400 million to develop EOG’s Ellis County, Oklahoma assets. The development program will last four years, according to a release by Carlyle. After certain performance hurdles are achieved, Carlyle’s working interests will mostly revert to EOG.
Ellis County, Oklahoma
EOG has made little mention of its Ellis County assets, making it difficult to gauge the impact of this program. The company’s most recent presentation and 10-K each make no mention of Oklahoma assets. According to Baker Hughes there are currently three rigs active in the basin, each horizontal and oil-targeting.
The Carlyle Group was in the news in April also, when the company’s partnership with Hilcorp, Hilcorp San Juan, purchased ConocoPhillips’ San Juan Basin assets for $3 billion.
