Kalnin becomes Marcellus operator through fifth asset package buy

By Luke Geiver | October 12, 2017

Kalnin Ventures LLC, a Denver-based energy investment firm backed by a $500 million equity fund, has proven again that it believes in the long-term opportunity in the Marcellus. The company announced that an affiliate company has made a $210 million acquisition of certain Marcellus assets. The acquisition is the fifth by the company in the past two years.

The assets in the deal include 112 wells (98 of which are producing), 11 drilled but uncompleted wells and three temporarily abandoned wells. Carrizo Oil, an independent oil and gas producer that is now focused on the Permian and Eagle Ford, sold the assets.

In the past two years, Kalnin has spent $417 million in the Marcellus and according to the company, is “poised to fully invest its first fund as it continues to expand.”

“This deal is unique from our previous four in that it provides us the opportunity to naturally expand into an operator position while also acquiring additional midstream assets,” said Christopher Kalnin, managing director of Kalnin. He added that the company will enhance their acquired assets through new technology and big data knowledge. “Our experience as a non-operator, and now operator, coupled with our high-quality asset base and proprietary technology, has put us in a compelling position to expand further in the super core of the Marcellus,” he said.

Kalnin has now acquired producing wells or midstream assets from Zena Energy LLC, Radler 2000 LP-Tug Hill Marcellus LLC, Chief Exploration and Development LLC and Range Resources-Appalachia LLC. This transaction gives Kalnin a total of 355 active wells.

The sole investor backing Kalnin is Banpu PcL, a Thailand-based coal mining and power generation company that has a total asset base of more than $6 billion.