Kalnin, Thailand firm and Devon agree to Barnett shale deal

By Luke Geiver | December 31, 2019

A Thailand-based coal-mining and power-generation company has played a large role in acquiring shale gas assets in the Barnett shale. BKV Oil & Gas LP, an investment arm of Kalnin Ventures that is also financially backed by Banpu Pcl, the Thailand firm, has agreed to a deal with Devon Energy Corp. valued at roughly $770 million.

According to Kalnin, The transaction with Devon includes over 320,000 gross acres and 4,200 producing wells, making BKV the largest natural gas producer in the Barnett Shale. This acquisition marks the BKV’s seventh major transaction and first position in the Barnett shale play. BKV has invested or committed over $1.3 billion since its formation 2015.

Net production from the Barnett Shale properties averaged 597 million cubic feet equivalent per day in the third quarter of 2019. At year-end 2018, proved reserves associated with these properties amounted to approximately 4 trillion cubic feet equivalent.

“We are excited to announce this acquisition in the Barnett Shale, as this continues our strategy of PDP weighted cash flow yielding investments, where we can leverage technology to drive operational performance” said Christopher Kalnin, CEO of BKV. “Devon has done wonderful work in the Barnett Shale and we look forward to continuing that tradition, delivering high-quality returns for many years to come.”

Banpu is focused on developing and investing in coal, power generation, natural gas and alternative energy, with investments located in Thailand, Indonesia, China, Australia, Lau PDR, Mongolia, Singapore, Japan and the United States.