IOG Capital investing $130 million in shale drilling programs

By Patrick C. Miller | September 18, 2017

Dallas-based IOG Capital LP will invest up to $130 million in three new development drilling programs in the Eagle Ford, the Merge portion of the STACK play and the Arkoma-Woodford shale in southeastern Oklahoma.

The three drill-ready development programs will be conducted through IOG’s newly formed affiliate, IOG Resources LLC. IOG now has a portfolio of assets in the Permian, Eagle Ford, Bakken, Marcellus and Arkoma-Woodford areas.

Marc Rowland, IOG’s founder and senior managing director, said, “IOGR remains committed to providing mutually beneficial project-based solutions to capable operators with exceptional assets, requiring between $25-150 million of development capital.”

The new investments in the Merge and Arkoma-Woodford have increased IOG and its affiliates’ total acreage position in Oklahoma to more than 17,000 net acres with greater than 80 percent of the position concentrated in the STACK (Dewey, Major, Kingfisher and Blaine counties) and the Merge (Canadian County).

IOGR’s first joint development agreement was established in July this year with Woodlands, Texas, based Earthstone Energy Inc. IOGR and Earthstone will initially partner on the development of 11 Eagle Ford wells located in Gonzales County, Texas. IOGR has the potential to participate in up to 15 additional wells in the project.

The company’s second joint development program closed in August with an Oklahoma City-based private family operator that has partnered on several projects with IOG since 2015. This new development program in the Merge calls for up to 18 wells to be funded in Canadian County, Oklahoma.

The third development program closed at the end of August with Oklahoma City-based Red Mountain Energy. IOGR and Red Mountain will jointly fund up to 20 wells targeting the Woodford in the Arkoma Basin. This is the second time IOG and Red Mountain have partnered in a development joint venture.

“We are very excited to work with what we believe are top-tier operators and partner to help them achieve their development plans,” Rowland said.

According to IOG, as of September, the company has deployed more than half a billion dollars of capital expenditure in more than 360 oil and gas wells diversified across 23 investments in four states and 22 counties.