Specializing in Midcontinent Oil and Gas Plays
Sanguine Gas Exploration is a Tulsa based, family run, independent oil and gas company led by Randy Nelson, the son of Sanguine’s founder, Don Nelson, and the grandson of Herman Kaiser, the founder of Kaiser-Francis Oil and Gas. Don Nelson was Exploration Manager at Kaiser-Francis for 15 years prior to establishing Sanguine in 1977. Randy started at Sanguine as a summer intern in 1981 and joined the company permanently in 1991 after working as a commercial credit officer in the New York headquarters of Citibank and completing his MBA. Randy became President and sole owner of Sanguine in 2003.
Sanguine has demonstrated an ability to adapt to a cyclical industry that has been continually impacted by technical change. Sanguine’s ongoing success is partly attributed to a lean management structure which allows the company to focus on a few high-impact investments within its Mid-Continent focus area that are sponsored by the Nelson family and management. It also benefits from a top tier, entrepreneurial management team that is “home grown” and has significant tenure with the organization. Most senior managers have spent their entire career at Sanguine.
Over its history, Sanguine has served as operator of over 750 drilling wells in Oklahoma and the Texas Panhandle. Over its first 30 years, Sanguine was a leader in the development of deep, over-pressured gas resources within the Anadarko Basin targeting lower Pennsylvanian formations in the Red Fork, Atoka, Morrow, and Springer. As part of its activity in the Western portion of the basin, Sanguine began, around 20 years ago, shifting its focus to the Pennsylvanian Granite Wash primarily in Beckham County, OK and Wheeler County, TX where it was a pioneer in vertical and horizontal drilling in this resource. Today, Sanguine is the operator of 310 producing wells across the Mid-Continent, 43 of which are horizontal.
Through the cycles of the industry, Sanguine has also been active as a buyer and seller of assets. In 2003, most of the then assets of the company, including operated production, were sold to Dominion Resources. The company then divested a package of Granite Wash production and associated acreage to Apache in 2008. In 2017, Sanguine sold undeveloped leasehold in the Arkoma Basin to an undisclosed buyer. On the buy side, in 2016 Sanguine completed a $45 million acquisition of properties from Enervest including 128 operated and 349 non-operated producing wells. More recently, in 2018, Sanguine acquired 44 operated wells along with the associated compression and gathering infrastructure in the Potato Hills field for $26 million.
Sanguine’s current strategy is to consolidate mature oil and gas production in the Mid-Continent to benefit from the company’s efficient management and field operations structure along with its expertise in maximizing lower volume production. These properties are a source of long term income for Sanguine and its base of family office investors.
As a complementary strategy, Sanguine continues to seek capital appreciation and growth from investments in leasehold and minerals in emerging and established development plays across the Mid-Continent.
The Deep Roots of Sanguine Gas
Kaiser Family Moves to Tulsa
Kaiser-Francis Oil Co. Formed
Nelson Family Roots in Oil & Gas
Don Nelson starts Sanguine Gas, LTD
Nelson at Citibank
Nelson receives Harvard Business School MBA
Involvement in Core Management
Randy at Sanguine, LTD
Sanguine Gas Exploration, LLC Starts
Deep Gas Well Drilling
Shallow and Horizontal Gas Wells
Acquisitions in Anadarko and Arkoma Basins
Acquisition of Potato Hills
Sanguine Gas Exploration, LLC Today
Sanguine is focused on maximizing the value of 310 operated wells and over 2,000 non-operated wells across the midcontinent area and growing through strategic partnerships, acquisitions, and leasehold projects.