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.