ABOUT TREADSTONE II
Treadstone Energy Partners, LLC was founded by Frank McCorkle, Key Sanford and Gene Roberts in March 2011 with financial support from Kayne Anderson Capital Advisors.
The primary objective of the company is to acquire properties with production and reserves growth opportunities through a mix of mature field well optimization, infill drilling and recompletions, to new reservoir play development. Investment will be focused on company operated assets to ensure aggressive, cost efficient and value optimized development and production operations. Treadstone will aggressively appraise and develop properties to maximum asset value. Property development is expected to be primarily focused on implementing new technology in vertical and horizontal well multi-staged fracturing application.
The acquisition portfolio may include producing properties, farm-ins and leasing, as the flexible capital structure allows Treadstone to consider a wide range of oil and gas opportunities with respect to size and structure. Treadstone will be primarily focused in the Mid-Continent and Texas regions, looking to build a balanced portfolio of gas and liquids assets.
Well Permits & Drilled Last 3 Years
Treadstone II Receives $100 Million Equity Commitment
Following the successful divestment of the Fort Trinidad field in July 2014, the former team of Treadstone Energy Partners, LLC (“Treadstone I”) is pleased to announce that it has formed Treadstone Energy Partners II, LLC (“Treadstone II” or the “Company”) with a $100 million equity commitment from Kayne Anderson Energy Fund VI, L.P. (“Kayne Anderson”) and members of the management team.
Treadstone II is a private exploration and production company formed to pursue acquire and exploit opportunities with scalable exploitation and development upside. The Company will focus on opportunities in the Mid-Continent region and Texas. The Treadstone II management team is led by Frank McCorkle, Key Sanford, and Gene Roberts, the three founding management team members of Treadstone I. In 2011, Treadstone I acquired the Fort Trinidad field (consisting of 18,300 net acres located in Houston and Madison Counties, Texas) for $17.7 million. Treadstone I subsequently ran a 3-rig development program and increased production from less than 20 bopd at the time of acquisition to over 10,000 bopd at exit. On July 22, 2014, Treadstone I sold the Fort Trinidad field to Energy & Exploration Partners for total consideration of $715 million. Based on its success with the Fort Trinidad field, Treadstone I received the Oil & Gas Investor Magazine’s “Best Field Rejuvenation” award for 2013.
Frank McCorkle commented, “We are excited to partner with Kayne Anderson again for Treadstone II. Our success with Treadstone I is directly tied to the working relationship we have with our Kayne portfolio team, who provides exceptional advice, challenge and insights to our analyses and plans. Our larger equity commitment shows our intent to grow a larger company with Treadstone II.”
“We are excited to recommit capital to an accomplished management team with an outstanding track record of evaluating, acquiring and developing oil and gas assets,” said Mike Heinz, Managing Partner at Kayne Anderson. “We look forward to the Company’s future growth.”
Treadstone Energy Partners II Announces Austin Chalk Results
Treadstone Energy Partners II, LLC (“Treadstone II” or “the company”), an exploration and production company currently operating in East Texas, announced today the results of the company’s Austin Chalk wells in Milam County, Texas. Treadstone II drilled and completed the company’s first Austin Chalk well in July 2017 (Ely 2-3HA), with an IP24 rate of 880 boepd (91% oil) and first year cumulative production of 140 mboe. “Subsequent wells drilled in 2018 have outperformed the Ely 2-3HA,” said Frank McCorkle, Chief Executive Officer of Treadstone II. The Holden Moore 3HA, completed in August 2018, had an IP24 rate of 2,800 boepd (91% oil) and 120-day cumulative production of 280 mboe.
“We are very pleased and excited with the performance of our initial Austin Chalk wells. We are continuing to evolve our drilling and completions practices to increase value and return on investment. While the Austin Chalk has been our primary focus to date, the Eagle Ford and Buda formations hold significant value over our acreage position,” said Frank McCorkle. With recent success, Treadstone II picked up a second rig in December 2018 to increase development pace. The company’s first Eagle Ford well (Remi Rose 1HE) reached TD (total depth) in December and is expected to be on production in late January 2019.
Map of Treadstone Wells Drilled Last 3 Years
The Austin Chalk
The Upper Cretaceous Austin Chalk in the Gulf Coast forms a low-permeability, fracture-rich reservoir, which has been revived over the past few years as an unconventional resource play.
The Austin Chalk occurs along a crescent stretching from Maverick and Zavala Counties in South Texas, via Burleson, Brazos and Grimes Counties, to Tyler, Jasper, and Newton Counties in East Texas, before extending further east into central Louisiana
In South Texas, the Austin Chalk just plays the second fiddle to the thicker and more consistent Eagle Ford shale play. Major developers of the Eagle Ford play active there include EOG Resources (EOG), ConocoPhillips (COP), BHP Billiton or now BP (BP), Chesapeake Energy (CHK), Encana (ECA), and Marathon Oil (MRO), among others.
In East Texas, Kayne Anderson-backed Treadstone Energy Partners II, LLC holds acreage in the Austin Chalk (see here). In Louisiana Austin Chalk, Equinor (EQNR) acquired 60,000 net acres in September 2018 from Texegy LLC for $75 million (see here); Marathon Oil owns 240,000 net acres, having entered the play at very low land prices (approximately $900/acre); Conoco Phillips (COP) holds 240,000 acres in the Louisiana Austin Chalk; Chevron (CVX) is also present.
In the heart of the Austin Chalk play in the Giddings Field area in various portions of Washington, Austin, Fayette, Lee, Burleson, and Brazos Counties, TX, is the so-called Gen 3 Austin Chalk
Enhanced Oil Recovery
Most companies are trying to get oil and natural gas out of the ground. Others make money by injecting wastewater or carbon dioxide into geological formations thousands of feet below the surface.
Last week’s edition of “Drilling Down” featured the top 10 companies trying to extract oil and natural gas. This week, we’re focusing on those filing for injection permits, which give a company permission to inject water and gases underground for either disposal purposes or to boost oil and natural gas production in a process known as enhanced oil recovery.
Houston exploration and production company Treadstone Energy Partners was the top injection well permit filer in the Eagle Ford Shale of South Texas with five permits for saltwater disposal wells.
Oil & Gas News
Oil & Gas Permits
