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Bayswater Resources Fund III, York Tactical Energy Fund Form JV for DJ Basin Development Programme
Tuesday 10 December 2019

10 December 2019 - Texas, US-based oil and gas development firm Bayswater Resources and Bayswater Natural Resources Fund III and the York Tactical Energy Fund, through its structured development capital strategy, YTEF Drilling Capital, LLC, have formed a strategic joint venture, the firms said.

Under the terms of the agreement, YTEF has committed to fund an undivided portion of up to 63 horizontal oil and gas wells located on six well pads for the development of Bayswater's flagship Weld County, Colorado acreage position located in the volatile oil window of the DJ Basin.

The investment will fund the drilling and completion of the joint wells targeting the oil-rich Niobrara A, B, C and Codell stacked-pay intervals in accordance with a mutually agreed development plan.

In exchange for funding a portion of the capital expenditures required to develop the joint wells, YTEF will receive an assignment of working interests entitling YTEF to receive a portion of the revenues from such wells.

The joint wells are anticipated to be drilled and completed through the fourth quarter of 2020. YTEF anticipates that it will fund up to USD 125m of capital expenditures relating to its participation in the joint wells.

Founded in 2004, Bayswater is a Denver based Oil and Natural Gas development company with projects principally in Colorado, Texas, and Wyoming.

Bayswater is privately held and has been a principal in a series of institutional energy funds since 2010. Bayswater is a responsible energy developer and continuously strives to conduct its business without accident, without harm to people, and without damage to the environment.

YTEF is a private investment fund led by investment professionals at York Capital Management in partnership with MEP. YTEF was formed in December 2018 to pursue private middle-market opportunities in the global energy sector through a variety of investment strategies.

York Capital Management is a global private investment firm that was established in 1991. The firm manages approximately USD 18bn in assets across public and private investment strategies, including its private equity platform, the York Special Opportunities Fund. York Capital employs approximately 60 investment professionals and 200 employees globally, primarily in New York, London and Hong Kong.

MEP is an energy asset management firm led by Drew Scoggins, William H. Goodwin, David Loveday and Clay Brett that manages a portfolio of operated, non-operated and financial assets in the oil and gas upstream and midstream sectors on behalf of York.

MEP was founded in 2012 and has financed the development of and taken direct ownership in assets in major basins throughout the continental United States, Gulf of Mexico and North Sea. MEP is based in Houston and has 13 employees.

Willkie Farr and Gallagher LLP served as legal advisor to YTEF on the transaction. Brownstein Hyatt Farber Schreck served as Colorado regulatory counsel to YTEF.
Date Published: 10/12/2019
Target: up to 63 horizontal oil and gas wells located on six well pads in the DJ Basin
Country: USA
Deal Size: 125m (USD)
Sector: Petroleum/Natural Gas/Coal
Type: JV
Status: Agreed
Vendor: Bayswater Resources Fund III
Buyer: YTEF Drilling Capital
Buyer Advisor: Willkie Farr and Gallagher , Brownstein Hyatt Farber Schreck