SOURCE: Kalnin Ventures

Kalnin Ventures

May 23, 2016 10:17 ET

Kalnin Ventures Announces Closing of Marcellus Asset Acquisition for Banpu Pcl

Acquisition Demonstrates Firm's Strategy of Complete Portfolio Development

BROOMFIELD, CO--(Marketwired - May 23, 2016) - Kalnin Ventures LLC today announced it has closed the purchase of a 29.4 percent stake from Range Resources - Appalachia, LLC in the Chaffee Corners Joint Exploration Agreement, an operation in the Marcellus shale of Pennsylvania, on behalf of its investor Banpu Pcl. The deal represents the first time a Thailand-based company has taken an interest in the U.S. shale gas industry.

Banpu Pcl is a Thailand-based coal mining and power-generation company with total assets of around $6.6 billion.

The Chaffee Corners total transaction value is $112 million and is comprised of:

  • 156 BCF of 1P reserves (as of December 2015 and estimated by third-parties);

  • Net production to interest approximately 21 million cubic feet per day;

  • 62 producing wells; 14 waiting on completion and more than 170 de-risked locations;

  • Substantial midstream assets including the gathering system and compression station, as well as firm off-take contracts. 

The transaction is an example of Kalnin Ventures' strategy to build a scalable model of acquiring, managing, and transferring non-operating portfolios for international entities such as Banpu Pcl.

Kalnin Ventures is committed to fostering relationships between privately held non-operators that are seeking to enter the upstream market with operators that are seeking long-term partners. 

"This was a compelling transaction not only because it was cash flowing on day one, but also because it is the culmination of 18 months of research backed by our strong industry relationships," said Chris Kalnin, managing director and founder of Kalnin Ventures LLC. "We screened more than 100 projects and found one with a world-class operator that is as focused on the long term as we are. We are continuing to pursue similar non-operated assets in the Marcellus Shale as well as other selected North American resource plays."

Repsol and Abarta Energy own the remaining interest in the exploration area, with Repsol (through its subsidiary Talisman USA) as the operator. 

About Kalnin Ventures
Kalnin Ventures is a values-driven firm that believes that the combination of visionary strategy, focus on execution, and balance in day-to-day life are the keys to creating long-term sustainable value.

Kalnin Ventures is backed by investors with equity fund commitments of $500 million within its oil and gas fund BKV Oil and Gas Capital Partners, L.P. The company seeks to invest in attractive upstream oil and gas opportunities in North America with the goal of creating long-term sustainable value in the energy industry. More information is available at www.kalninventures.com.

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