IOG Capital LP has substantially increased its presence in the Utica Shale through the purchase of nonoperated wells from an affiliate of Sequel Energy Group LLC.

The firm’s IOG Resources LLC reported in early March that it had closed an Ohio Utica acquisition of nonoperated working interests in 77 producing horizontal wells operated by Southwestern Energy Co. and Ascent Resources LLC. Production averaged about 75 MMcfe/d (85% gas) as of the Jan.1 effective date.

In 2018, IOG made an initial investment in Belmont County, Ohio, in 10 wells. It followed the next year with two Guernsey County wells.

The March transaction keeps with IOG’s shift from development capital projects to acquisitions of nonoperated PDP assets, the firm said in October.

The seller, Sequel Energy, is a private, Denver-based company that targets nonoperated oil and gas interests throughout the lower 48.  The company was formed in 2016 by GSO Capital Partners LP, the credit platform of Blackstone.

IOG Capital is an investment firm based in Dallas that manages oil and gas assets. As of July 2019, IOG has closed over 32 transactions across 7 states, 28 counties, and has invested in more than 500 wells, according to its website.

Kirkland & Ellis LLP acted as legal counsel for IOG. Sequel was advised on the sale process by RBC Richardson Barr and Welborn Sullivan Meck & Tooley acted as legal counsel.