Riverside Energy Michigan, LLC announces acquisition of O.I.L. Energy Co., LLC Antrim Shale production assets, effective Feb. 1

TRAVERSE CITY, Mich. — Riverside Energy Michigan, LLC has announced its acquisition of 100 percent of the membership interest of O.I.L. Energy Co., LLC, effective Feb. 1, 2017. According to a press release issued late last week by Riverside Energy Michigan, LLC, the acquired assets include the operated Antrim Shale gas production interest of O.I.L. Energy Co., LLC, consisting of over 6 million cubic feet of natural gas per day (gross), 277 operated Antrim Shale wells and 23,277 net acres, with associated production facilities and pipeline infrastructure.

In a separate transaction reported by Riverside, certain associated assets in over 101,000 acres of “held by production” leasehold rights below the Antrim Shale formation were acquired from O.I.L. affiliate Shale Energy Co., LLC. Riverside Energy Holdings LLC was formed in 2016 between White Deer Energy (www.whitedeerenergy.com) and the Umbono Capital group (www.umbono.
com) for the purpose of acquiring the entire interest of Chevron Michigan, LLC from Chevron. Prior to the O.I.L. acquisition, Riverside owned interests in 2,880 wells and 312,000 net acres in Michigan.

As reported by Michigan Oil & Gas Edition, the late April 2016 acquisition by Riverside Energy Holdings, LLC of Chevron Michigan LLC involved properties initially developed by MichCon in the 1990s and early 2000s that were sold to Atlas in 2007 and then acquired by Chevron in 2011. Net natural gas sales were reported as 45 million cubic feet per day (Mmcf/d) at the time of the acquisition from Chevron. Within the acreage position acquired from Chevron, Riverside held oil and gas rights to basement on 63,000 net acres. An affiliated Riverside company owns and operates the New Albany Shale play properties formerly operated by El Paso in southern Indiana (See www.­riversideenergygroup.com).

Riverside CEO Rob Gerhard said, “We are delighted to take this first step in our broader strategy of consolidating the Antrim Shale in order to operate most efficiently and with the best possible scale. We have a vision of ‘breathing new life’ into the Antrim Shale and extending this natural treasure by several decades if possible, while maintaining a strong focus on our environmental stewardship and the responsibility to our stakeholders of leaving northern Michigan better than we found it.”

Following the April 2016 acquisition of Chevron Michigan LLC, Riverside Energy Michigan, LLC reported production of more than 10.4 billion cubic feet (Bcf) natural gas from May through November 2016. Linn Operating Inc. reported the second highest volume of operated gas production during that period, more than 7.8 Bcf.

“We’re proud to be Michigan’s largest natural gas producing company and we continue to actively seek acquisition opportunities in the Antrim Shale and other oil and gas plays in the state,” Gerhard added.

The O.I.L. Energy Antrim Shale gas producing properties acquired by Houston-based Interstate Explorations LLC has revealed plans for its first Michigan oil and gas prospect outside of Eaton County, filing a drilling permit application late last month for a Trenton-Black River targeted wildcat test in Section 32 of Ionia County’s Orange Township (T6N-R6W). The proposed Walkington Farms 1-32 (SL: SE NW SE, Sec 32-T6N-R6W) is projected to reach a depth of 6,500 feet on a 40-acre drilling unit comprised of the NW¼ of the SE¼ of Section 32.

Interstate drilled and has conducted tests on three exploratory holes drilled in Sections 15, 28 and 30 of Eaton County’s Roxand Township (T4N-R5W) since mid-2016. At latest report the Root 115 (SL: NE SE SW, Sec 15) had been scheduled for tests in the Niagaran after the Trenton was determined to be dry. Records released last month by the Michigan Department of Environmental Quality’s Oil, Gas & Minerals Division indicate that Interstate’s Roll 2-28 (SL: SW SE SW, Sec 28) continues to be evaluated following perforations and testing in Cambrian Mount Simon and
Ordovician Prairie du Chien and Black River intervals and that their Burk 1-30 (SL: NE NW NE, Sec 30), the most recently drilled of the three, was being tested in the Black River.

The Ionia County prospect’s location is about 6 miles west of the city of Portland, Mich. and is 13 miles northwest of the Eaton County play area that Interstate has been worked since mid-2016. The nearest previous oil and gas drilling to the Walkington Farms 1-32 staked location is an unsuccessful 1984 deep test drilled by Petroleum Corporation of Texas in Section 28 of Orange Township. The Ferris & State Orange 1-28 (SL: SE SE NW, Sec 28-T6N-R6W) was plugged and abandoned without tests at a total depth of 6,700 feet in the Prairie du Chien. Gas shows were observed in the Antrim, A-2 Carb, A-1 Carb, Clinton and Manitoulin.

More recently, Rosetta Resources Operating LP plugged a horizontally-drilled A-1 Carbonate wildcat in Section 21 of Orange Township in late 2015 after testing non-commercial volumes of 11 barrels per day oil and 66 Mcf per day natural gas.

The State Orange & Christensen 1-21 HD1 (SL: NE NE SE, Sec 21) was drilled to a measured total depth of 8,657 feet (4,679 feet true vertical) on Nov. 4, 2012. All of Ionia County’s commercial oil production to date — less than 50,000 barrels — has come from the Dundee in the five-well Hubbardston Field and the one well North Plains, Sec. 18 Field, all located in North Plains Township (T8N-R5W).

Riverside are located in Antrim, Otsego,  reported nearly 117 Bcf in operated Antrim Montmorency and Oscoda counties. O.I.L. Energy Corp. was a pioneer in Michigan’s Antrim Shale gas evelopment, reporting its first Antrim gas production in September of 1988. An analysis of cumulative production records maintained by the Michigan Department of Environmental Quality’s Oil, Gas & Minerals Division shows that O.I.L. Energy Corp. had Shale natural gas production through November 2016, the seventh highest total for a single Michigan Antrim Shale operator during that period. Riverside Energy Michigan, LLC’s Michigan office is located at 10691 E. Carter Rd., Ste. 201, in Traverse City, Mich. They may be contacted by telephone at 231-995-4000.