Background

Headington Energy Partners, LLC (HEP) is a new entity 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 has 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 the:

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

With the creation of Headington Energy Partners, LLC, we have added a number of key employees in management, technical and operations positions.

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.

Concurrent with efforts to exploit upside in existing South Texas assets, HEP has been working toward growth strategies along the Gulf Coast, in the Permian Basin, the Mid-Continent and other prospective areas in the domestic United States. Legacy assets in Texas and Oklahoma acquired through non-operated acquisitions provide a base from which to build on and strive for growth.