Waveland’s investment activities in the Mid-Continent region of the United States have been made alongside some of the most experienced and respected operators in the industry. Since 2002, Waveland has participated in drilling hundreds of wells in central Oklahoma. Through 2016, these wells have produced over 3.7 million barrels of oil and 113 billion cubic feet of gas plus associated natural gas liquids. Waveland expanded its operating-partner relationships with the addition of Tulsa-based Orca Resources, LLC in 2008, Dallas-based Trail Ridge Energy Partners II, LLC in 2012, and DJR Energy, L.P. in 2016. Each of Waveland’s partners possess strong geologic assessment abilities, extensive engineering expertise in horizontal well design, drilling and completion, and state-of-the-art fluid management. This expertise results in consistent production efficiencies.
Bakken Shale, Williston Basin – North Dakota
Waveland and Three Peaks Resources, LLC, one of Waveland’s long-standing, technical energy management teams, initiated an acquisition strategy to capture minority non-op working interests and mineral interests alongside some of the largest oil and gas companies currently operating in in the core of the Bakken Shale and Three Forks plays in the Williston Basin in northwestern North Dakota. These operating companies include Continental Resources, ExxonMobil XTO, Whiting Petroleum, Hess Corporation, and EOG Resources, among others.
Waveland’s Bakken Non-Op Strategy is focused on the core area of the Bakken, which Waveland and Three Peaks believe has some of the best reservoir quality in the Williston Basin and full cycle drilling economics that are among the best in the United States. Waveland and Three Peaks believe minority non-op acquisition opportunities in the core of the Bakken can support over $100 million in annual investment opportunity for Waveland’s investment partnerships with attractive return profiles.
The fundamental positive advancements in the Bakken including low entry costs; increased takeaway capacity, which has reduced oil price differentials; low royalty rates; multi-well pad drilling; and enhanced frac technology, have led to an increase in development activity in the Williston Basin and an investment opportunity that Waveland and Three Peaks believe has significant economic potential.
Orca began generating oil and gas exploration projects in 2003 with a focus on unconventional plays utilizing dewatering operations. Although Orca began in 2003, its staff played roles in developing the dewatering production techniques at its earliest stages in the West Carney Hunton Field in Central Oklahoma in 1998. Orca carefully identifies drilling opportunities in reservoirs previously missed or misunderstood by the industry. Utilizing a variety of specialized horizontal drilling techniques and equipment, Orca is able to capitalize on these opportunities by efficiently producing oil and gas while removing and safely disposing vast quantities of salt water from the reservoir formation. Orca continues to be a leader in recognizing potential plays with new areas developing in central and western Oklahoma. Currently, Waveland and Orca are developing over 6,400 acres in Southern Dewey County in the Anadarko Basin of western Oklahoma where the “Scoop” and “Stack” plays we believed to converge.
Permian Basin – West Texas
Waveland entered the Permian Basin in December 2012 with the acquisition of approximately 18,000 acres in Scurry County, Texas, targeting the emerging Cline Shale and Mississippian plays. The Cline Shale formation within the Midland Permian Basin is an oil/liquids weighted play that includes several pay zones and may contain significant amounts of recoverable oil. Waveland “leasebanked” this position on behalf of Trail Ridge, and Trail Ridge subsequently secured multi-million dollar commitments from Riverstone Holdings and Trilantic Capital Partners. Then in 2014 and 2015, Trail Ridge acquired 7,000 acres in the “heart” of the Wolfcamp play in the Midland Basin, a project in which Waveland has 7.5% direct working interest.
San Juan Basin – Northwestern New Mexico
Waveland, alongside its Colorado-based operating partner DJR Energy, LP, entered the San Juan Basin in 2016 with the acquisition of over 5,000 acres in the oil window Gallup formation of the San Juan Basin in New Mexico. Based on the analysis of over 35,000 electronic logs to form a regional geologic model in the San Juan Basin, DJR has concluded that the San Juan Basin is an economically viable basin even at today’s hydrocarbon pricing environment. In addition, DJR believes that the San Juan Basin’s upside value potential will be comparable to that of the DJ Basin 6-8 years ago, and the San Juan Basin is expected to yield strong economic results in an environment of rising hydrocarbon pricing. In addition to direct experience in the San Juan Basin, DJR has extensively analyzed and mapped other productive formations in the rocky Mountain region.