The deal with IOG Gonzales 1835 LLC – an entity managed by IOG Capital, LP, Covington Equity Investments LLC and 1836 Resources, LLC – makes SDRII the owner and operator of 624 acres in Karnes County, Texas, known by many as the core of the Eagle Ford shale play. Peak production for the asset is estimated at 3,000 barrels of oil equivalent, per day. This strategic acquisition will allow SDRII to build its operating capacity and experience for future growth through operating existing producing wells and future well development within the Asset.
The Reed Smith deal team for SDRII was led by Houston-based Energy & Natural Resources partner Gary C. Johnson, and included Pittsburgh partner Leo N. Hitt in the firm’s global Corporate Group, Philadelphia partner Mike A. Jacobs from the State Tax team, and Houston Environmental partner Daniella D. Landers. Houston Energy and Commodities associate James M. Pappenfus and Financial Industry Group associate Ali K. Burner also assisted.