Ellipsis U.S. Onshore Holdings Expands Non-Operated Portfolio through Strategic Acquisitions and Farmout Agreement

Ellipsis U.S. Onshore Holdings has completed two transactions to expand its non-operated portfolio in key U.S. onshore basins. The company acquired high-quality oil and gas assets in the Permian Basin and entered into a farmout agreement with Black Stone Minerals covering 270,000 gross acres in East Texas. The acquisitions enhance Ellipsis' Delaware Basin footprint and align with its strategy of building scale through high-margin, non-operated assets.

Ellipsis U.S. Onshore Holdings LLC has completed two significant transactions to expand its non-operated portfolio in key U.S. onshore basins. The company, a subsidiary of the Westlawn Group, has acquired high-quality oil and gas assets in the Permian Basin and entered into a farmout agreement with Black Stone Minerals, covering approximately 270,000 gross acres in East Texas.

In the first transaction, Ellipsis acquired non-operated oil and gas assets in the Permian Basin of Texas and New Mexico. These assets include current net production of approximately 4,000 barrels of oil equivalent per day, with upside potential tied to more than 600 gross remaining drilling locations. On a pro forma basis, Ellipsis' assets now include more than 8,200 net acres in the Northern Delaware Basin, and the company expects to produce a daily average of 20,000 barrels of oil equivalent for the remainder of 2025 [1].

In a separate transaction, Ellipsis has entered into a Farmout Agreement with Black Stone Minerals, L.P. (NYSE: BSM) covering approximately 270,000 gross acres across San Augustine, Nacogdoches, Angelina, Houston, and Trinity counties in East Texas. This agreement provides Ellipsis with the exclusive right to earn non-operated working interests in BSM's Haynesville acreage position, which includes approximately 100,000 undeveloped net acres and a defined path to additional bolt-on opportunities. The Farmout Agreement includes a tiered commitment structure that escalates over five years, beginning with a minimum of six wells in 2026 and increasing to 25 wells annually by year five [1].

These transactions represent a significant step forward for Ellipsis, enhancing its Delaware Basin footprint and aligning with the company's strategy of building scale through high-margin, non-operated assets. Ellipsis continues to execute a disciplined strategy focused on building a scaled, high-margin non-operated portfolio across premier North American resource plays [1].

References:
[1] https://www.prnewswire.com/news-releases/ellipsis-us-onshore-holdings-announces-strategic-acquisitions-and-farmout-agreement-to-expand-non-operated-portfolio-302533739.html