Bayswater Resources LLC, Bayswater Natural Resources Fund III and the York Tactical Energy Fund, through YTEF Drilling Capital LLC, formed a joint venture to develop Bayswater's acreage position in the DJ Basin.
Under the agreement, YTEF will fund the drilling and completion of up to 63 horizontal oil and gas wells on six well pads in Weld County, Colo., according to a Dec. 9 news release. YTEF expects to fund up to $125 million of capital expenditures related to developing the wells. In exchange for its funding, YTEF will get working interests, which will allow it to receive part of the revenues.
Drilling is expected to be completed through the fourth quarter of 2020, according to the release.
Willkie Farr & Gallagher LLP served as the legal adviser, while Brownstein Hyatt Farber Schreck served as the Colorado regulatory counsel to YTEF.
Bayswater is a privately held oil and natural gas development company with projects located mainly in Colorado, Texas and Wyoming. YTEF is a private investment fund led by a partnership between York Capital Management and Millennial Energy Partners.