BOSTON, Mass., Sept. 7, 2016 /PRNewswire/ -- ArcLight
Capital Partners, LLC, one of the leading energy-focused private
equity firms, announced today its affiliated portfolio company,
Element Petroleum II, has agreed to sell its remaining oil and gas
assets in the Permian Basin to a subsidiary of Callon Petroleum
Company (NYSE: CPE). This follows Element II's sale of
adjacent assets to affiliates of Blue Whale Energy in 2015 and to
Diamondback Energy in 2013.
ArcLight partnered with the Element Petroleum management team to
form Element II in 2011. Element II was ArcLight's second
partnership with the Element team, which is led by Todd Gibson, its Chief Executive Officer.
ArcLight recently made its third investment with Element in its
most recent fund, committing $186
million to Element Petroleum III in September 2015 to acquire and develop additional
oil and associated rich gas properties in the Permian Basin.
Over the past five years, Element II drilled 76 wells across a
land position of 21,500 net acres in the Permian Basin, including
the first successful horizontal Wolfcamp well in Howard
County, Texas in May 2013.
"We could not be happier with Element II's
success," said Dan Revers, ArcLight's Co-Founder and Managing
Partner. "The Element team has been a tremendous partner
and we congratulate them on this terrific outcome. We look
forward to working with them on Element III."
Mr. Revers added, "While ArcLight is best known for power and
midstream, our portfolio of select upstream assets has been an
important contributor of our fund performance, providing key
insights and portfolio diversification."
"We continue to see many opportunities in the Permian Basin and
are excited to continue to have ArcLight's partnership and
support in Element III," said Mr. Gibson.
About ArcLight Capital Partners
ArcLight is one of the leading private equity firms focused on
energy infrastructure investments. Founded in 2001, we helped
pioneer an asset-based private equity approach to investing in the
dynamic energy sector. We have invested approximately $16.8 billion in 99 transactions since inception,
generating strong realized returns for our limited partners from 62
exits across diverse market cycles. Based in Boston, our 29-person investment team targets
midstream, power and production opportunities with substantial
growth potential, significant current income and meaningful
downside protection, typically on a proprietary basis. We employ a
hands-on value creation strategy that utilizes our in-house
technical, operational and commercial specialists as well as our
400-person asset management affiliate. More information about
ArcLight, and a complete list of ArcLight's portfolio companies,
can be found at www.arclightcapital.com.
About Element Petroleum
Element is an exploration, development, and production company
based in Midland, Texas. We were an early entrant into the
shale oil plays of the Permian Basin. Management dedicated
its efforts to find and develop acreage prospective for vertical
Wolfberry exploitation and, more recently, horizontal exploration
and development of the Wolfcamp and Spraberry shales. To date,
management has drilled approximately 400 wells across 120,000 acres
in the Permian Basin, including the first successful horizontal
Wolfcamp well in Howard County,
Texas, in May 2013. As of September 2016, Element has successfully drilled
and completed an additional 37 horizontal wells. Element III
was formed in 2015 to find, develop, and acquire oil and gas
reserves and production, primarily in the Permian Basin.
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SOURCE ArcLight Capital Partners, LLC