In a recent development within the Texas oil and gas sector, multiple air permits have been transferred from SN Operating LLC to Formentera Operations LLC, signifying a strategic move in the Eagle Ford Shale. This permit transfer is critical to ongoing oil and gas production in South Texas, specifically in Frio County, where these facilities are located.
The Permit Transfer: A Closer Look
The permits transferred are categorized under the Texas Commission on Environmental Quality’s (TCEQ) New Source Review (NSR) Change of Ownership process. The transfer covers a range of facilities, including:
- Hausser A & B Production Facility
- Hausser J Pad
- Hausser Nos 2H & 3H Production Facility
- Hausser SWD Facility
- Newsom Production Facility
All projects have been marked as “complete,” signaling a seamless transition under Formentera Operations’ ownership.
Formentera Operations LLC: A Growing Player
Based in Austin, Texas, Formentera Operations is an energy-focused firm founded by industry veterans Bryan Sheffield and Blake London in 2020. With the addition of Paul Treadwell and Stephanie Reed, the leadership team brings decades of combined experience in optimizing oil and gas assets.
Formentera’s core strategy involves acquiring and enhancing producing assets across key onshore U.S. basins. To date, the company owns approximately 3,200 wells, producing an impressive 50,000 barrels of oil equivalent per day. Their operations span Texas, Oklahoma, North Dakota, Louisiana, and Mississippi, employing over 200 staff members.
SN Operating LLC: A Legacy in Texas Production
SN Operating LLC has been a major player in Texas, with a production record of 113 million barrels of oil equivalent (BOE) as of May 2023. The company manages 408 actively producing wells, with daily production of 3,666 barrels of oil and 3,666 MCF of gas.
Their decision to transfer air permits to Formentera highlights a shift in operational focus while allowing Formentera to further cement its position in the Eagle Ford Shale, one of the most prolific oil and gas regions in the U.S.
What This Means for the Eagle Ford Shale
The transfer of permits in the Eagle Ford region is significant for both Formentera and the broader South Texas oil and gas sector. This move allows Formentera to increase its footprint in one of Texas’ most productive basins, leveraging its expertise to enhance efficiency and production rates across its facilities.
Given the regulatory landscape and the evolving energy market, this transition reflects a strategic consolidation of assets, ensuring continued production while maintaining compliance with environmental standards.
Conclusion
The transfer of air permits from SN Operating to Formentera Operations highlights a growing trend of asset optimization in the oil and gas sector. Formentera’s focus on responsible acquisition and enhancement of producing assets positions the company as a key player in the industry. As they continue to strengthen their portfolio in the Eagle Ford Shale, their impact on the Texas oil and gas landscape is expected to grow.
Stay tuned for more updates on Formentera Operations and other developments in the energy sector.
