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The Blackstone Group has signed two partnership deals to expand its oil and gas holdings in the Permian Basin.

Blackstone said Thursday that it has formed Jetta Permian, a partnership with an affiliate of Jetta Operating Company and funds managed by Blackstone Energy Partners.

Jetta Permian will target assets and leaseholds in the Delaware Basin located in West Texas and southern New Mexico with $1 billion of capital committed from Blackstone and Jetta’s partners.

Blackstone said that Jetta will pursue asset and leasehold acquisition opportunities, farm-in transactions and partnerships or joint ventures with existing operators and landowners.

“With a $1.0 billion equity commitment and with the collective resources of the Blackstone team to support the partnership, coupled with the Jetta team’s operating capabilities and track record, this will allow for and enable the strategic and successful acquisition and development of high quality oil and gas assets in the Delaware Basin,” CEO and President of the general partner of Jetta Permian and the president and owner of Jetta Greg Bird said.

Blackstone Energy Partners and funds affiliated with Blackstone have also committed about $500 million of capital to Guidon with the “potential to commit significantly more with future acquisitions.”

Blackstone and industry veteran Jay Still formed Guidon in the first quarter of this year with the intent to build a significant, independent shale development company focused on the Midland Basin.

“Guidon’s objective is to optimally develop its leasehold through manufacturing styled horizontal well development,” Blackstone said.

Guidon is led by Still, who previously held senior executive positions at  Pioneer Natural Resources and Laredo Petroleum.

Earlier this year, Blackstone and Guidon purchased about 22,000 gross acres in the core of Martin County, Texas.

“We are very pleased to have acquired a significant, strategic, and top-tier position in the core of the Midland Basin, a premier North American liquids-rich play, which was signed in the second quarter of this year and has subsequently closed,” Still said.