Novo Oil & Gas II is taking off and targeting Permian Basin acquisitions after making a $1.5 billion exit last year.
Novo Oil & Gas Holdings II LLC is launching with an equity capital commitment from private equity firm EnCap Investments, Novo announced April 23. Financial terms of EnCap’s investment in Novo II were not disclosed.
The second Novo aims to build on the strategy employed by its predecessor, Novo I, which built up a sizeable Delaware Basin position.
Novo II also plans to pursue unconventional asset acquisitions with a particular focus on the Delaware side of the basin. The company will acquire both operated and non-operated mineral positions.
The company is led by CEO and Co-Founder John Zimmerman, who served as CFO for Novo I.
“We are excited to once again focus on the acquisition and development of high-quality upstream assets throughout the Delaware Basin, one of the most prolific oil and gas regions in North America,” Zimmerman said in a release.
“EnCap has been a trusted partner for more than a decade, and we are grateful for their continued support as we leverage our existing relationships and expertise to drive value through innovative exploration, drilling and completion techniques,” he said.
The Novo II team also includes President and Chief Commercial Officer Brandon Patrick, CFO David Avery and COO Kurt Shipley. All in-house Novo II employees previously held roles within Novo I.
Formed in 2016, Novo I exited in a $1.5 billion sale to Earthstone Energy and Northern Oil & Gas last year.
Earthstone acquired two-thirds of the company for $1 billion; Northern Oil & Gas acquired a 33.33% undivided stake in the Novo assets for $500 million.
Novo’s assets included around 11,300 net acres across Eddy County, New Mexico, and Culberson County, Texas.
“Our tenured partnership with John Zimmerman and Novo has led to multiple successful exits across different basins,” said EnCap Managing Director Jason DeLorenzo. “They have a proven track record of value creation, and we look forward to continuing our successful partnership with them.”
Just days after Earthstone and NOG closed the Novo acquisition, Earthstone itself was acquired by growing Delaware Basin producer Permian Resources for $4.5 billion.
RELATED
Recommended Reading
Sangomar FPSO Arrives Offshore Senegal
2024-02-13 - Woodside’s Sangomar Field on track to start production in mid-2024.
NAPE: Chevron’s Chris Powers Talks Traditional Oil, Gas Role in CCUS
2024-02-12 - Policy, innovation and partnership are among the areas needed to help grow the emerging CCUS sector, a Chevron executive said.
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
Proven Volumes at Aramco’s Jafurah Field Jump on New Booking Approach
2024-02-27 - Aramco’s addition of 15 Tcf of gas and 2 Bbbl of condensate brings Jafurah’s proven reserves up to 229 Tcf of gas and 75 Bbbl of condensate.