DJR offers Whiptail an opportunity to work with a best-in-class producer in a basin with significant growth potential
Whiptail Midstream acquires DJR Energy’s oil, gas, and water gathering systems in the San Juan Basin. (Credit: Anita starzycka from Pixabay)
Whiptail Midstream announced today that the company has acquired the oil, gas, and water gathering assets of DJR Energy in the Gallup oil window of the San Juan Basin. As part of the transaction, DJR has agreed to a long-term dedication of its leasehold acreage for oil, natural gas, and water production to Whiptail. The acquisition more than doubles Whiptail’s dedicated acreage, miles of pipeline and production flowing on its assets. The company now has more than 475,000 dedicated acres and nearly 525 miles of pipeline in the San Juan Basin.
Whiptail plans to build out gathering infrastructure for DJR as it develops its acreage. The assets will be designed for multi-well pad development to minimize future surface disturbance. The combined portfolio offers multiple synergies to make the midstream infrastructure in the San Juan as efficient and reliable as possible.
“We are excited to work with DJR in developing the midstream infrastructure that they need to support their activity in the San Juan Basin while also growing our network,” said Whiptail Midstream CEO Josh Lamberton. “DJR is a proven operator with an experienced team and track record of exploring and developing oil and gas positions in the DJ and now the San Juan basins.”
“Whiptail has a substantial infrastructure position in the San Juan, and we look forward to benefiting from their experience, operational efficiency and reliability as the midstream service provider for DJR and our upstream partners moving forward,” said DJR CEO David H. Lehman.
Sidley Austin LLP served as legal counsel to Whiptail. DJR was represented by Latham & Watkins LLP.
Source: Company Press Release