Development Capital Resources announced that a DCR-managed subsidiary, capitalized by funds managed by affiliates of Ares Management, has entered into a drilling and development joint venture with a private operator in the Permian Basin.
The DCR-managed entity will invest up to $165 million in the joint venture and will participate as a working interest owner in the drilling and completion of identified drilling locations in the Permian’s Wolfcamp formation. The drilling program has commenced, and it is anticipated to continue through 2020.
“This transaction represents a continuation of our strategy of participating in energy sector joint ventures with quality operators in established basins,” said Ronnie Scott, President of DCR. “As the structure of energy joint ventures continues to evolve, DCR has worked to remain flexible in finding ways to assist operators to improve and develop their assets.”
“We are excited to complete our fourth transaction in this segment of the energy space. In each case, we have been able to structure a creative solution tailored to the needs of the operator,” said Matt Loreman, Executive VP of DCR. “While the energy investment space remains challenging, it has been enjoyable to work directly with quality companies to find investment solutions that work for them and for DCR. We look forward to continuing to grow our portfolio of non-operated partnerships.”
“This partnership reflects the flexible capital approach of Ares and our ability to customize transactions to the needs of operators,” said Gary Levin, Partner in the Ares Private Equity Group. “We look forward to finding additional ways to utilize the scale and creativity of our platform to provide attractive capital solutions to the energy industry.”
DCR was formed in early 2017 to provide capital to the North American exploration and production industry and, in partnership with funds managed by affiliates of Ares, has been involved in four transactions representing more than $1.3 billion to acquire and fund participating interests in joint ventures across projects in Texas, Oklahoma, and California.
Source: Company Press Release