Thailand-Backed Kalnin Ventures Builds Up Portfolio of Shale Assets

Posted on 12/28/2019

Kalnin Ventures LLC is a financial investment company with equity commitments of US$ 522 million within its oil and gas fund BKV Oil and Gas Capital Partners, L.P. Kalnin Ventures is mainly backed by Banpu Public Company Limited, the largest coal mining company from Thailand. Banpu is listed on the Stock Exchange of Thailand. Christopher Kalnin is a co-founder of Kalnin Ventures, which seeks to invest in attractive upstream oil and gas opportunities in North America.

On December 17, 2019, Kalnin Ventures, through Banpu Kalnin Ventures, acquired Devon Energy Corporation’s assets in the Barnett Shale for US$ 770 million. According to Devon Energy, net production from the Barnett Shale properties averaged 597 million cubic feet equivalent per day in the third quarter of 2019. The Barnett Shale is a geological formation located in the Bend Arch-Fort Worth Basin.

Barrett Shale Deal Advisors

Jefferies and Citi acted as financial advisors to Devon Energy on the Barnett Shale transaction. Vinson & Elkins LLP acted as legal advisor to Devon Energy. Willkie Farr & Gallagher LLP acted as legal advisor to Banpu Kalnin Ventures.

Sixth Marcellus Shale Acquisition

On December 12, 2019, Kalnin Ventures, through an affiliate of its BKV Oil and Gas Capital Partners, L.P., acquired Warren Resources, Inc.’s entire Northeast Marcellus shale position and is valued at US$ 105 million, with potential of two additional payments of US$ 3.75 million each over the next two years, depending on natural gas prices. The Northeast Marcellus shale is located in Pennsylvania’s Wyoming County. Upon completion of this transaction, BKV Oil and Gas Capital Partners will operate over 115 producing wells and have interests in 330 gross wells across of over 60,000 net acres across in its portfolio.

Warren Deal Advisors

Willkie Farr & Gallagher LLP acted as legal advisor to Kalnin Ventures. UBS Investment Bank acted as financial advisor to Warren Resources and Harris, Finley & Bogle, PC acted as legal advisor to Warren Resources.

The acquisition follows BKV Oil and Gas Capital Partners’ previous transactions with Carrizo (Marcellus) LLC and Reliance Marcellus II, LLC; Zena Energy LLC; Radler 2000 LP – Tug Hill Marcellus, LLC; Chief Exploration and Development LLC; and Range Resources – Appalachia, LLC, all located in the productive Marcellus Shale.

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