Denver-based Caerus Oil and Gas LLC announced yesterday the purchase of more than 300 wells and approximately 160,000 net developed and undeveloped acres, all held by production, in Texas County, Oklahoma, for an undisclosed amount. Also included in the purchase were over 100 miles of gathering systems previously owned by the seller.  The acquired properties currently produce oil and liquid-rich natural gas from the Council Grove, Key, Chester, Cherokee and Morrow formations with average target depths between 5,000 and 7,000 feet.  The acreage is also prospective for the Cleveland and Marmaton formations.

The seller, also undisclosed, was described as “a major U.S. independent energy company” who was making an exit of its operations in Texas County, Oklahoma.

Jeter Thomas, chief financial officer at Caerus told Oil & Gas 360® the acquired acreage provides Caerus a robust inventory of recompletion candidates, as well as new organic exploratory drilling opportunities in the Mid-Continent region.  As part of the transaction, Caerus licensed approximately 230 square miles of 3D seismic from the seller.

“These new properties are near our current Mid-Continent operations in Kansas, providing a substantial new expansion area for Caerus in a familiar area,” said Thomas. “The Mid-Continent has been a great place to build value for our company.”

Thomas said that it has always been Caerus’ corporate objective to significantly increase the value of acquired assets through active management of existing fields with a goal to lower costs and increase production and reserves.  The focus of Caerus is on conventional reservoirs in the Midcontinent and the Rockies.

“These new properties fit our strengths,” Thomas added.

Caerus planning to expand employee base

Concurrent with the transaction, Caerus announced plans to hire up to seven new professional and support staff to manage the assets.  The company plans to add staff in the disciplines of geology, engineering, operations, land, and accounting.

“As we continue to grow and expand our company on all fronts, we are excited for the opportunity to bring on new Caerus team members to help build on our previous successes,” Thomas said. “Our expanding portfolio creates ground-floor opportunities for technical staff to make a meaningful contribution as we pursue new assets to acquire, grow and exploit.”

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The company’s primary oil and gas assets are located in Kansas, Oklahoma, and Wyoming, and include more than 360,000 net acres of land. Oil & Gas 360® notes that Caerus’ two founding sponsors are subsidiaries of Oaktree Capital Management and Anschutz Investment Company.

For more information about Caerus, visit the company’s website at


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