Former Western Refining execs create Delaware Basin E&P in NM

By Luke Geiver | October 01, 2018

Partaking in the historic New Mexico Bureau of Land Management lease sale for acres located in the heart of the Delaware Basin has helped create Franklin Mountain Energy, an El Paso, Texas-based exploration and production company led in part by the founders of Western Refining Co.

This week, Franklin Mountain Energy that is has amassed an acreage position in the New Mexico Counties of Lea and Eddy where it will develop oil and gas operations. FME acquired roughly 4,000 acres through the BLM’s oil and gas lease in New Mexico and an additional 4,280 acres from OneEnergy Partners Operating LLC.

“With mostly undeveloped federal acreage and multiple geologic targets, we have hundreds of potential long lateral drilling locations, many high-pressure oil-weighted benches to develop and the opportunity to utilize central facilities and multi-well pad development,” said Paul Foster, chairman of FME.

FME is a newly formed affiliate of Franklin Mountain Capital. The investment company is run by Foster and Jeff Stevens among others. Both were responsible for the creation of Western Refining Co. in 1997. In October 2017, Western Refining was acquired by Andeavor Logistics in a unit-for-unit transaction and assumption of $280 million of net debt for a total enterprise value of approximately $1.7 billion, according to Franklin Mountain Capital.

Along with the BLM acquisition, the OneEnergy purchase was also performed with cash. In the near future, FME plans to establish a more permanent capital structure to fund its ongoing drilling program and provide the necessary working capital, the company said.

The new assets collected by FME include wells that are proven in the 1st Bone Spring, 3rd Bone Spring, Wolfcamp XY, Wolfcamp A and Wolfcamp B.