Chisholm, Gastar combine to create the leading STACK E&P company

6/19/2019

TULSA and HOUSTON (BUSINESS WIRE) -- Chisholm Oil and Gas, LLC, of Tulsa, Okla., and Gastar Exploration LLC of Houston, Texas. have announced that they have entered into definitive agreements to effect a merger between the two companies. The combined company, which will operate under the name Chisholm Oil and Gas and be headquartered in Tulsa, will have net production of approximately 20,000 boed and a combined acreage position of approximately 165,000 net acres, primarily in Kingfisher County, Okla.

Chisholm is currently running three rigs and has a dedicated frac crew. The parties believe that the Gastar assets will be highly synergistic to their upstream operations as well as to Chisholm’s ownership stake in Great Salt Plains Midstream Holdings, LLC and its wholly-owned salt water disposal subsidiary, Cottonmouth SWD, LLC.

The transaction is expected to close in third-quarter 2019, subject to satisfaction of customary closing conditions.

Chisholm was formed in 2017 with backing from funds managed by certain affiliates of Apollo Global Management, LLC and management. Gastar is owned through private equity funds affiliated with Ares Management Corporation.

Chisholm was advised by Citigroup Inc., as financial advisor, and Vinson & Elkins LLP and Paul, Weiss, Rifkind, Wharton & Garrison, as legal advisors. Evercore and Tudor Pickering Holt & Co. provided financial advisory services to Gastar in connection with the transaction, and Kirkland & Ellis served as legal advisor to Gastar.

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