X2 Resources, led by the team that built XCL Resources, is targeting $500 million to multibillion-dollar acquisitions across “premier” oil and gas basins with backing from EnCap and other investors.

X2 Resources secured new equity capital commitments from EnCap Investments LP, Westlawn Group, Rice Investment Group (RIG) and its management team, the firms said April 24.

X2 told Hart Energy it's keeping all options on the table and looking throughout North America for oil, gas or mixed production assets with high growth potential.

“X2 has a proven track record of excellence, and we believe the team is well positioned to capture a significant asset base and execute on a large-scale development program in an efficient and responsible manner to create value for its shareholders,” said EnCap Managing Partner Jason DeLorenzo said in a press release.

“We are thrilled to be in partnership with EnCap, Westlawn, and RIG, and deeply appreciate their support and trust,” said X2 CEO Gray Lisenby.

Before leading XCL Resources, Lisenby served as CFO at natural gas producer Rice Energy. He was involved in Rice Energy’s $6.7 billion sale to EQT Corp. in 2017, according to investor filings.

The X2 team also includes CFO Nick Barham, COO Ryan Rogers and executive vice presidents Dan Shea and Matthew Jankovsky.

Vinson & Elkins LLP served as legal counsel to EnCap on the creation of the new firm. Winston & Strawn LLP served as legal counsel to Westlawn, and Latham & Watkins LLP served as legal counsel to X2.

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XCL: Uinta pioneers

The X2 team is coming off a $2.64 billion sale in Utah to SM Energy and Northern Oil & Gas (NOG) in October 2024. NOG took a 20% non-operated stake in XCL’s Uinta Basin assets.

XCL was the leading developer in the Uinta’s waxy crude oil play, where the company grew production from 10,000 bbl/d to 60,000 bbl/d.

Its operations focused primarily on the prolific Uteland Butte bench, the basin’s most established targets.

XCL drilled 250 wells across 12 of the Uinta’s formations, including underdeveloped zones such as Douglas Creek, Castle Peak and the Wasatch, demonstrating early success in extending the boundaries of the play.

The promising stacked pay was enough to lure SM and NOG into an entirely new basin. SM has identified 17 producing zones beneath its newly acquired Utah asset.

Now, SM has tests spread across the Uinta’s “upper cube” and “lower cube.” The shallower upper cube includes the lower Garden Gulch, three Douglas Creek benches and an underlying, unnamed black shale, ranging from 9,000 ft to 10,000 ft in depth.

The deeper lower cube consists of the Castle Peak, the Castle Peak limestone, Uteland Butte, the Wasatch 5 upper and lower and the Wasatch 4 between 10,000 ft and 11,500 ft.

Following on the heels of XCL’s sale, Ovintiv sold its Uinta asset to private E&P FourPoint Resources for $2 billion. The Ovintiv sale closed in January.

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