Ellipsis closes 2023 with third buy, expands out of Permian

Ellipsis U.S. Onshore Holdings LLC, an affiliate of Houston-based investment firm Westlawn Group LLC, has acquired non-operated assets across three basins for an undisclosed price. The company said the assets are located on both the New Mexico and Texas sides of the Permian Basin, in Colorado’s DJ Basin and on the Louisiana side of the Texas-Louisiana Salt Basin. They have current two-stream production of 6,000 boe/d and about 550 gross drilling locations. Ellipsis now expects its 2024 two-stream production to average more than 13,000 boe/d and owns interests in an inventory exceeding 1,900 gross drilling locations.

“Closing 2023 with our third significant acquisition marks a major milestone for our company. We are excited to advance our non-operated asset strategy in 2024 with a continued focus on both marketed and off-market opportunities,” managing directors Matt Gentry and Adam Howard said in a Dec. 22 statement. “We would encourage potential operating partners and those with non-operated assets to reach out to our team as we continue to deploy significant capital with Westlawn’s support and financial backing.”

The acquisition marks a step-out from the Delaware Basin for Ellipsis, which was formed in June. Its first deal, announced concurrently with the company’s launch, covered 4,500 boe/d of two-stream production and 250 gross drilling locations in the Delaware. Ellipsis’ second deal, announced in October, added 3,000 boe/d and 900 locations in the same basin.