ABOUT US
GME is committed to generating value through disciplined acquisitions of oil and gas assets and improving cash flow and net asset value. GME’s returns-focused strategy aims to acquire the best rock, operate as efficiently as possible and drill industry-leading wells.
The company’s strategic objectives target a return on capital to its investors through positive cash flow and net asset value growth in a safe and reliable manner. Every one of our employees are aligned to accomplish this through enhanced base production levels, reduction of costs, and the pursuit of production growth through efficient and safe operations all while striving to embody our core values of humility, integrity, passion, accountability, and collaboration.
GME is committed to generating value through disciplined acquisitions of oil and gas assets and improving cash flow and net asset value. GME’s returns-focused strategy aims to acquire the best rock, operate as efficiently as possible and drill industry-leading wells.
The company’s strategic objectives target a return on capital to its investors through positive cash flow and net asset value growth in a safe and reliable manner. Every one of our employees are aligned to accomplish this through enhanced base production levels, reduction of costs, and the pursuit of production growth through efficient and safe operations all while striving to embody our core values of humility, integrity, passion, accountability, and collaboration.
Our Partner
Grayson Mill Energy (GME) is backed by EnCap Investments, the industry’s leading provider of growth capital to the upstream sector. Since 1988, EnCap has invested approximately $24 billion in more than 240 different upstream companies.
Grayson Mill Energy History
Grayson Mill Energy (“GME”) was formed with an equity commitment from management and EnCap Investments, L.P.
- GME is founded by Eric Bayes, Blake Sullens and Matt Ultis
GME builds ~30,000 acre position in Powder River Basin primarily in Converse county. The area is prospective for the Turner, Niobrara, Mowry, Muddy and Parkman formations.
GME continues to focus on large scale acquisitions outside of the Powder River Basin with a focus in the Rockies region, specifically the Williston Basin.
GME spuds a well in the Turner formation in Converse County, WY. Company elects to delay completion of the well due to pandemic-induced low oil prices.
GME completes Charybdis well in Powder River Basin. The well produces >100,000 bbls. of oil in 90 days. The well confirms high rock quality on position and warrants additional capital activity.
GME executes PSA with Equinor to acquire its Williston Basin position and announces $900 million acquisition. At the time of the acquisition, the assets including 242,000 net acres, 736 gross operated wells and was producing 40.0 net BOEPD.
GME completes 2nd well in Powder River Basin. The well produces 1,000 gross barrels of oil per day in the first 30-days.
GME commences operations to complete 25 DUC wells acquired in acquisition and picks up its first rig in the Williston basin.
Without completing a single new well, the company increased production in the Williston Basin by 25% to 55 Mboepd through increased workover activity, production optimization, and increased uptime initiatives.
GME picks up 2nd rig for continual operations and the company increased production to 60 net MBOEPD in the month of March 2022.
Concluded the third straight month of gas captured above the North Dakota average. Through September 2022, the asset saw it’s second-best gas capture year on record.
GME’s employees over the last six months donated 386 volunteer hours to the Williston, ND and Houston, TX communities.
GME has contributed $195,000 in the last 11 months to local community, education, health and outreach programs.
YTD, GME reduced our Total Recordable Incident Rate (TRIR) by 41% from the previous year while ramping up activity. GME also picks up 3rd rig and is producing ~63 Mboepd
GME acquires 62,000 net acres and 1,420
boepd and subsequently divested 21,000 acres and 435 boepd in Western
North Dakota and Montana. The company also divested its Powder River
Basin position.
GME announces the execution of a PSA with Ovintiv to acquire its Williston Basin position for $825 million. At the time of the announcement, the assets include 46,000 net acres and produced ~37 Mboepd in the 1st quarter 2023. The assets sit in Grayson Mill III (Bakken), a newly formed company with the same management.
GME averaged a record of 120 net Mboepd in the 3rd quarter of 2023.
- The production stream achieves high cash margins given it's ~55% oil ratio and ~80% liquids ratio. The company is currently drilling with three rigs and has an active refrac campaign to produce a relatively flat production level in 2024
Gme is driving enhanced economics and inventory additions through 3-mile laterals
- As of December 31, 2023, GME had turned to production four 3-mile laterals wells on the west side of its acreage position. These wells on the Reidle DSU have produced ~775 MBO through 200 days of production. Given the enhanced economics and significant inventory runway remaining, 60% of wells completed (or 39 wells of a total ~65 wells) will be 3-mile laterals in 2024. For a more detailed look at the results, please see the attached link.
GME divests its Williston Basin assets to Devon Energy for $5.0 billion, delivering an exceptional return for its partners.