Chisholm Energy Holdings acquires its first asset in Delaware Basin, New Mexico

US-based oil and gas company start-up Chisholm Energy Holdings has completed the acquisition of its first asset, located in the New Mexico region of the Delaware Basin. 

The company did not reveal the financial terms of the deal.

The asset is located in Eddy and Lea counties and was acquired from an undisclosed private seller.

According to the company, the asset includes a substantial amount of highly attractive undeveloped acreage with multiple targets in the Bone Spring and Wolfcamp formations. 

Chisholm is backed by private equity firm Warburg Pincus with a $500m line-of-equity.

Commenting on the acquisition, Chisholm Energy Holdings chief executive officer Mark Whitley said: "We are excited to be building a new enterprise focused on the Delaware Basin of New Mexico, where we continue to see many untapped and compelling opportunities. 

“We are pleased to have partnered with Warburg Pincus and to have their support behind our ongoing efforts."

Warburg Pincus managing director James R. Levy said: "Having known Mark for several years, we are highly confident in his and the entire Chisholm team's ability to create value through their considerable drilling and completions expertise. 

“We look forward to supporting them as they pursue their strategy."

Headquartered in Fort Worth, Texas, the company was formed in May last year.

The company is focused on pursuing unconventional resource opportunities in the northern Delaware Basin and intends to leverage its expertise in horizontal drilling and completions.