US’ Kalnin Ventures signs PSA for fourth acquisition of Marcellus asset

Upstream oil and gas investment company Kalnin Ventures has signed a purchase and sale agreement (PSA) with Zena Energy on its fourth acquisition of a non-operating portfolio in the Marcellus Shale area of Wyoming County, US.

The $16.25m deal was executed by Kalnin Ventures on behalf of its BKV Fund and investor Banpu, a Thai-based coal mining and power-generation company with assets worth $6.6bn.

Under the agreement, the acquisition portfolio comprises interest in 34 wells.

This acquisition move follows on from Kalnin acquiring stakes in Marcellus Shale assets from Radler 2000 LP – Tug Hill Marcellus, Chief Exploration and Development, and Range Resources – Appalachia.

According to Kalnin Ventures, the acquired asset generates cash immediately and fits within its strategy of acquiring profitable assets.

In addition to net production to an interest of around six million cubic feet per day, and 33 billion cubic feet (bcf) of 1P reserves, other provisions in the agreement include access to nearly 1,000 net contiguous acres in the productive Marcellus Shale area of Wyoming County.

The latest acquisition will allow the company to hold an interest in 241 active wells, with six additional wells awaiting completion. Meanwhile, the net production to interest will increase to more than 50mcf per day.

Kalnin Ventures managing director and founder Christopher Kalnin said: “Our goal since opening our doors has been to use big data and technology to identify strategic assets and apply our unique approach to managing non-operated assets.

“We continue to seek and find attractive opportunities and operating partners. 

“Looking toward the future, we will continue to operate in a space where we utilise technology and non-operator management to help improve operator performance and drive attractive risk-adjusted returns for our investors.”

Kalnin Ventures has executed four transactions and spent more than $200m of equity towards building a scalable model of acquiring, managing and monetising non-operated portfolios in less than two years.