Vine Oil & Gas LP (“Vine”) and GEP Haynesville, LLC (“GEP”) exchanged non-operated working interests in the majority of Vine and GEP’s joint venture assets located in Red River, DeSoto and Sabine parishes in Northwest Louisiana (the “Exchange”).
The Exchange unwinds a material portion of the joint venture area of mutual interest and allocates to each party the entirety of the future development.
Vine and GEP will continue to share joint ownership in approximately 50 producing wells that were brought online in 2015 and 2016, and which were excluded from the Exchange.
Eric Marsh, Vine’s President and CEO, commented, “It was a privilege to partner with GEP in the development of our joint Haynesville position over the past two years. GEP is a quality operator and I am grateful for the way our technical teams worked so well together in the pursuit of our common interests. We look forward to continuing our relationship as we remain vested in our jointly held wells.”
Margaret Molleston, GEP’s President and CEO, commented, “We have enjoyed partnering with Vine in the implementation of enhanced completion techniques that have delivered basin leading well results. The Exchange is a mutually beneficial transaction that affords both companies the ability to optimize acreage positions and future development initiatives. We look forward to continuing our relationship and collaboration with Vine in our mutual area of operations.”
Kirkland & Ellis LLP acted as legal advisor to Vine and Bracewell LLP acted as legal advisor to GEP.