Charger Shale Oil Co. LLC, Midland, Tex., and funds managed by Oaktree Capital Management LP, Los Angeles, have formed a joint venture targeting 100 horizontal well locations across multiple horizons in the Permian basin.
Before Oaktree’s pledge of $600 million in an initial equity commitment a “runway commitment” of a further $300 million, Charger had secured more than 40,000 acres in the Delaware basin with capital from managers and other investors. The company has closed on the initial acreage and plans to expand development to more than 85,000 acres.
Charger’s leaders are former key executives of Tall City Exploration (TCE), which acquired and developed more than 34,500 acres and held a further 48,000 prospective acres. TCE sold those properties for $1.2 billion in two transactions in 2014 and 2015.
Joseph Magoto, former president of TCE, is chief executive officer and president of Charger.
He said Charger’s goal is to assemble more than 100,000 acres and prove up 1,500 locations.