The private equity firm also announced the acquisition of 10,000 net acres of leasehold by Pachira Oil & Gas in the Eagle Ford Shale Play
Image: Pachira Oil & Gas is a newly formed company by Fulcrum Energy Capital Funds in the Eagle Ford Shale. Photo: courtesy of Johannes Plenio/Pixabay.
Fulcrum Energy Capital Funds, a Colorado-based private investment firm, has formed a new portfolio company called Pachira Oil & Gas, which will focus on the development and production of oil in South Texas.
Assets of Pachira Oil & Gas
Pachira Oil & Gas has started its business by acquiring more than 10,000 net acres of leasehold in the Eagle Ford Shale Play in the region from an undisclosed buyer. Financial terms of the deal were not disclosed by Fulcrum Energy, which is focused on pursuing oil and gas investment opportunities in North America.
The acquired assets of the new oil and gas company include existing production made up of nearly 90% oil, drawn from more than 20 net operated horizontal wells.
Fulcrum Energy said that the addition of Pachira Oil & Gas to its portfolio increases its exposure to the Gulf Coast crude market, as Louisiana Light Sweet (LLS) crude trades more closely with the international Brent pricing benchmark compared to the West Texas Intermediate.
The acquired assets of the new company are also located in proximity to refining and export demand centres in the Gulf of Mexico, said the private investment firm, which was formerly known as Morse Energy Capital Partners.
Fulcrum Energy president Brad Morse said: “As with any of our acquisitions, the Pachira assets have substantial upside potential through capital-light operations optimization and were purchased at an attractive valuation based on existing production and current cash flows.
“We expect that these assets will provide significant long-term value to Fulcrum’s investors and provide a base for future expansion in the Eagle Ford if Fulcrum continues to see attractive add-on acquisition opportunities in the basin.”
In February 2019, Morse Energy said that it secured more than $100m (£80.19m) in committed capital. The private equity firm, which was renamed as Fulcrum Energy Capital Funds at that time, said that it deployed more than $50m (£40.09m) of investment capital in 2018 across five new exploration and production investments.
Fulcrum Energy’s portfolio also includes Epic Resources, Black Oak Exploration, D90 Resources apart from investments in oil and gas assets in Central Oklahoma and Western Oklahoma.