A two-year old oil company with more than $1 billion in assets acquired in Oklahoma, Texas and California plans to invest more money into drilling operations in the Permian Basin.
Development Capital Resources, based in Houston announced it has obtained funding managed by affiliates of Ares Management Corporation and plans to invest $165 million.
The investment will be in a joint venture with a private operator in the Basin. Development Capital Resources will participate as a working interest owner in the drilling locations in the Permian’s Wolfcamp formation. The program is already underway and is expected 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.”
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.