#United States #Dallas #Ellipsis #Westlawn Group #Farmout Agreement

Strategic Expansion by Ellipsis U.S. Onshore Holdings

Ellipsis U.S. Onshore Holdings LLC, a key subsidiary of the Westlawn Group, recently reaffirmed its commitment to growth in the oil and gas industry with two substantial transactions aimed at expanding its non-operated asset portfolio across vital U.S. onshore basins. The company's strategy is centered around scaling operations efficiently while minimizing risks associated with direct ownership.

Key Transactions

The first major achievement includes the acquisition of high-quality, non-operated oil and gas assets situated in the renowned Permian Basin, which straddles Texas and New Mexico. The seized assets yield a current net production of approximately 4,000 barrels of oil equivalent per day and feature more than 600 gross drilling locations available for future exploration. According to Ellipsis, this acquisition is a strategic enhancement to its robust footprint in the Delaware Basin, allowing the company to further expand its production capabilities to an anticipated 20,000 barrels of oil equivalent daily by the end of 2025.

In addition to the acquisition, Ellipsis has initiated a Farmout Agreement with Black Stone Minerals, L.P., covering around 270,000 gross acres spread across key counties in East Texas, including San Augustine, Nacogdoches, and Angelina. This partnership entails a collaborative drilling program with Revenant Energy LLC, granting Ellipsis exclusive rights to earn non-operated working interests in BSM's Haynesville acreage. Under this agreement, Ellipsis plans a tiered commitment structure consisting of a minimum of six wells in 2026, eventually increasing to 25 wells annually by the fifth year. This structured approach not only enhances operational capacity but also positions Ellipsis to further tap into the economic potential of Haynesville’s natural resources.

Future Growth and Strategies

Leading executives Matt Gentry and Adam Howard expressed that these steps mark a significant advancement for the company. The strategic positioning in the Permian Basin, combined with the disciplined and capital-efficient approach to scaling its Haynesville exposure, aligns with their long-term vision for sustainable growth. The emphasis on high-margin, non-operated assets underscores Ellipsis’s dedication to maximizing return on investment while fostering a diversified portfolio.

Brad Vinzant, Managing Director at Westlawn, voiced pride in Ellipsis's disciplined approach to building a high-margin non-operated portfolio across promising North American resource plays. By leveraging attractive sourcing and structuring opportunities, the team at Ellipsis showcases their capacity for driving growth despite fluctuating market conditions.

Legal Support

In facilitating these transactions, Ellipsis engaged the legal expertise of Winston Strawn LLP and Gray Reed McGraw LLP to ensure compliance and strategic alignment throughout the acquisition and agreement processes.

About Ellipsis and Westlawn Group

Founded in 2023, Ellipsis is a Dallas-based private energy firm, focusing on acquiring and developing large-scale, producing oil and gas assets across the country. The company's investment strategy emphasizes non-operated working interest acquisitions that exceed $100 million, showcasing a partnership-driven approach that emphasizes collaboration with operators and financial stakeholders to unlock value effectively.

Westlawn Group, established in 2021, operates out of Houston and concentrates on long-term investments in the global oil and gas sector, targeting both operated and non-operated assets. With a diverse investment mandate that extends across the United States and beyond, Westlawn is committed to enhancing production and performance through innovative technologies.

These developments signal Ellipsis U.S. Onshore Holdings' ambitious endeavor to grow its footprint in the U.S. oil and gas sector, positioning itself as a competitive player prepared to capitalize on new opportunities as they arise.