Eagle Energy Exploration LLC (“Eagle II”) is a private oil and gas company formed to pursue oil and gas exploration and production opportunities in the Mid-Continent region of the United States. Following the strategy of Eagle Energy of Oklahoma, LLC (“Eagle I”), a successful Fund IV portfolio company, the Eagle II management team has significant experience in asset acquisition, development and optimisation with a proven track record of creating value from Mid-Continent assets.
Riverstone and the Eagle II management team believe an opportunity exists to accumulate attractive assets in the Mississippian play, as capital constrained independents struggle to hold acreage before the sunset of primary terms for leases signed in the 2010 to 2012 time frame. Management expects to be able to accumulate a meaningful net acreage position through a combination of lease acquisitions, farm-in arrangements, and new leasing at substantially lower valuations than those seen over the last three years.
Furthermore, the Eagle management team has deep connections with local operators and access to proprietary deal flow in the Mississippian. With this advantageous sourcing position, the generally decreasing cost of entry in the Mississippian and the management team’s operating experience in the play, Eagle II is poised to capture attractive returns. Eagle II also plans to assess and potentially pursue opportunities in additional Mid-Continent formations, such as the Granite Wash and Woodford Shale.
In September 2014, Eagle II announced the signing of a definitive agreement to acquire oil and gas assets in Oklahoma's Mississippi Lime play from Fairway Resources Partners II, LLC for $195 million. The properties to be acquired comprise approximately 20,000 net acres in Alfalfa, Grant and Woods counties with current production from the Mississippi Lime.