Callan Power Expands Williston Basin Footprint with $12.5M Non-Operated Oil and Gas Deal — Callan JMB Inc.

Event summary

Callan Power LLC, a subsidiary of Callan JMB Inc., to acquire non-operated oil and gas assets in the Williston Basin for $12.5M in cash plus cost reimbursements.
Acquisition includes interests in 377 producing wells, 150 BOE/day of current net production, and 27 additional wells in process.
Independent reserve report estimates $48.1M PV-10 on proved reserves and $82.7M on total 3P reserves.
Transaction expected to close before October 1, 2026, with $2.5M annualized net operating cash flow at $75 WTI.
Michael Reger, former Northern Oil and Gas founder, to lead Callan Power as President.

The big picture

This acquisition strengthens Callan JMB's energy division, aligning with its strategy of building a diversified portfolio of non-operated oil and gas assets. The deal reflects a broader industry trend of companies seeking exposure to producing assets with immediate cash flow while leveraging experienced operators for field management. With Michael Reger at the helm, Callan Power aims to replicate the success of non-operated models in the Williston Basin, potentially positioning itself as a competitor to established players like Northern Oil and Gas.

What we're watching

Execution Risk: Whether Callan Power can integrate and manage the newly acquired non-operated assets effectively without direct operational control.
Commodity Volatility: How fluctuations in oil prices will impact the $2.5M annualized net operating cash flow and overall returns.
Development Upside: The pace at which the 27 wells in process and future drillable locations will contribute to production and cash flow.