Background

Headington Energy Partners, LLC (HEP) was established to operate and manage the co-founders’ oil and gas assets while pursuing growth strategies through acquisitions and joint venture opportunities.

The majority of the HEP team were long-term employees of Headington Oil Company. Beginning in 1988, Tim Headington initiated a strategy of pursuing reserve growth through acquisitions -- primarily focused on divestitures from major oil companies and large independents. These efforts resulted in the accumulation of a significant number of non-operated working and royalty interests in several basins in the domestic U.S.

Headington initiated its South Texas focus with the purchase of the Flour Bluff Field from Oryx and Exxon beginning in 1990. Subsequently, a number of additional acquisitions and joint ventures were undertaken across this prolific basin and formed the foundation for much of the current exploitation focus. Through these South Texas efforts, Headington built relationships with William R. Johnston and Pat L. Smith, and growth strategies expanded from acquisition of non-operated properties to exploiting operations-intensive opportunities.

Concurrently, the team accumulated extensive geoscience and engineering knowledge critical to extending the success of the South Texas operations. The group has repeatedly demonstrated the ability, through acquisition or joint venture, to assume operation of a mature field area and dramatically enhance value through exploration, exploitation and production management.

In 1997, Headington expanded its focus into the Rockies via an asset trade for Coastal’s Williston Basin properties. With this foundation, the team initiated an aggressive leasing program in the early 2000s, culminating in an acreage position of 500,000 acres (gross) and 360,000 acres (net). This Williston Basin acreage footprint spanned the area from Richland County, Montana, through the Nesson Anticline in western North Dakota. From this base, Headington Oil Company was one of the first movers in the development of the Bakken (and Three Forks/Sanish) trend. By 2008, Headington was operating a continuous five-rig drilling program, completing 160 horizontal Bakken wells prior to a divestment event in 2008.

Our highly successful (technically and financially) Williston program fundamentally represented an extension of our core South Texas strategy. In sum, that strategy entails:

  • acquisition of acreage in mature provinces that we feel are underexplored and/or underexploited
  • application of the best available technology using the best professional expertise and
  • optimization of exploration/development to achieve the highest possible financial return.

In 2013, the HEP team completed an acquisition of several South Texas fields in Kenedy County. For the most part, these were properties that Headington had previously initiated redevelopment and exploitation programs through joint ventures, and we continue to exploit conventional assets in this mature basin.

Concurrent with efforts to exploit upside in existing South Texas assets, HEP has been working toward growth strategies in the Permian Basin. With the creation of Headington Energy Partners LLC and the transitioning to our McKinney office, we have added key employees in management, engineering, geoscience, land, and accounting.  We have assembled a team of oil and gas professionals with extensive experience in operations, asset management, exploration and business development with a focus on unconventional reservoirs/basins. Development of legacy operated assets in the Delaware and Midland Basins acquired through transactions that consisted primarily of non-operated assets has provided a base from which to build on and strive for growth.