DJR Energy’s Acquisition of Encana’s San Juan Basin Assets

Latham & Watkins LLP and Davis Polk & Wardwell LLP acted as legal advisors to DJR and Trilantic North America.

DJR Energy, LLC announced the acquisition of Encana Corporation’s San Juan Basin assets. The pending acquisition includes approximately 182,000 net acres, and, when combined with DJR’s existing assets, the Company will have a total of over 350,000 net acres focused in the oil window of the San Juan Basin. At close of the pending acquisition, DJR will have production of over 6,000 barrels of oil equivalent per day and hold an inventory of over 1,100 high value drilling locations boasting breakevens competitive with other premier oil basins.

DJR is an oil and gas exploration and production company formed in April 2017 by Dave Lehman and funded by Trilantic Capital Management L.P. (“Trilantic North America”), Waveland Energy Partners and Global Energy Capital. Since 2002, the DJR Energy management team has delivered exceptional returns to investors via the successful creation and sale of two companies in the DJ Basin of Colorado (DJ Resources LP and DJ Resources LLC).

Trilantic North America is a private equity firm focused on control and significant minority investments in North America. Trilantic North America’s primary investment focus is in the business services, consumer, and energy sectors. Trilantic North America currently manages six private equity fund families with aggregate capital commitments of $9.0 billion.

Davis Polk advised Trilantic Capital Management LP in connection with the establishment of co-investment vehicles to participate in the acquisition by DJR Energy, LLC of Encana Corporation’s San Juan Basin assets with a team including Michael S. Hong (Picture), counsel Jennifer Grant Cooper and associates Sijia Cai, Michael W. Brasher and Amy L. Larsen. Partner David H. Schnabel, counsel Ethan R. Goldman and associate Joshua J. Micelotta provided tax advice. Partner Jeffrey P. Crandall and counsel Charles Shi provided ERISA advice.

Involved fees earner: Michael Hong – Davis Polk & Wardwell; Jennifer Grant Cooper – Davis Polk & Wardwell; Sijia Cai – Davis Polk & Wardwell; Michael Brasher – Davis Polk & Wardwell; Amy Larsen – Davis Polk & Wardwell; David Schnabel – Davis Polk & Wardwell; Ethan Goldman – Davis Polk & Wardwell; Joshua Micelotta – Davis Polk & Wardwell; Jeffrey Crandall – Davis Polk & Wardwell; Charles Shi – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Trilantic Capital Partners;

Author: Ambrogio Visconti