Natural Gas Exploration and Production (E and P) Ban Pullen Venture Corporation (BKV) signed a $ 430 million deal to buy a natural gas power plant in Temple, TX earlier this month.
Neutral E and M, with a focus on the upper basin, value chain integration was primarily a region of swimmers and supermarkets. But BKV CEO Chris Calney said the deal would mark the beginning of a new era for coastal E and P companies, which see many entering the value chain as they seek stability in the midst of the ocean cycle.
“I think this is the end of the war,” Callen told NGI. “Over the next 10 years, E and P companies that were traditionally neutral in the Coastal Valley will begin to enter the value chain. This is not just a superhero. And we think there are enough, small, unique opportunities for men below the threshold to play.
BKV Thai Energy Company is a subsidiary of Ban Pu PCL, a Denver-based company based in Burnett Shale and Marseille, Pennsylvania, North Texas. Under the deal, which is set to close at the end of the year, it plans to purchase 758 MW Temple 1 power plant from Temple Generation Instructions II LLC.
Caln said the plant will be fed by Barnett acreage, which he bought from Deven Energy Corporation in 2020. The eclipse produces 500 MPF / D, and Caln’s new plant produces 75-100 MPC. . The rest of the product will be marketed in “various pools”, which is how BKV gas is currently sold, he said.
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BCV is a major player in the Texas energy market, which is expected to grow in the coming years as companies such as Tesla and HP move to Lone Star. Kalin sees the potential for significant savings by combining production and end-use.
He said there could be many similarities with the way we have contracted with the power plant.
He said the acquisition will enable BKV to use the electricity market in a “stable” future.
If you look at the future curve for gas, it’s really high over the next two years, and then it’s going to fall faster. ” “Power is more stable. And so the tail of the curve, if you go outside, it is more stable and higher than gas, and vice versa in the near future. So, depending on the shape of the future curve, we can better position our purchases between gas or electrons and actually protect and hold them up, or side by side, depending on what you want to see.
More deals on the horizon
If all goes according to plan, BKV is set to have a busy two years. The company is currently reviewing additional basin deals and is expected to announce them in the next 12-24 months. BKV is looking at other direct-to-end discoveries, such as the Temple Plant, Kalin said.
The company is not immune to environmental threats from investors and other stakeholders, and BKV aims to break free from carbon emissions within a decade.
He will soon be looking at BKV’s potential for carbon capture, use and sequencing projects. He said the company has started working with several partners to investigate CCCC and believes that Calvin BKV can deliver up to 50,000 tons of carbon dioxide into a reservoir.
He added that the company is exploring options available to the public in the next 12-36 months.
“We think it’s time for E&P companies to be Wall Street lovers again,” he said. And I think with a new history and a new angle, we think that the company is going to be that investor that has a lot of growth and discipline, the full cycle of the 21st century.
When asked if BKV would opt for a traditional first public offering (IPO) or a reverse merger with a special purpose acquisition company, Calvin was the choice for the IPO.
“This means we are always looking for opportunities,” he said.