Exploration & Production | Deals - Joint Ventures | Capital Markets | Private Equity Activity

Permian E&P BC Operating Forms JV with Nadel and Gussman, LLC

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Midland-based BC Operating, Inc has formed a joint development agreement with Nadel and Gussman, LLC, combining the two companies’ acreage and reserves in southern Eddy and Lea counties in New Mexico. The combined position consists of an acreage footprint of approximately 50,000 net acres, and 5,500 barrels of oil equivalent (BOE) per day of operated production.

BC will assume operatorship of the combined acreage including all existing wells. The large-scale position has multiple targets in the Permian Basin including Wolfcamp, Avalon, Delaware and Bone Spring production. BC expects to run at least one drilling rig in 2016 and will add more acreage, strengthening the combined position.

Mike Black, president of BC Operating, said: "As a Midland-based company, we have more than 30 years of experience in the Permian Basin. Our legacy in this region gives us a unique understanding of the operational and geological trends that drive successful production. We are delighted to partner with Nadel and Gussman, as they also have a rich history in the area, a talented staff of employees and a deep knowledge of the resource. We are confident that this strategic combination of assets is poised for substantial growth."

Jim Adelson, president and managing member of Nadel and Gussman, adds: "We are excited to have affiliated with the BC Operating team. Nadel and Gussman values its relationships with its partners and we are excited about the opportunity to continue to build the value of this world-class asset."