Strategic acquisition of conventional oil and gas assets from Hibernia Resources III, LLC supports Lodestone’s long-term goal | Acquisition funded using local West Texas partners
MIDLAND, Texas, July 20, 2022 /PRNewswire/ — Lodestone Energy Partners II, LP (“Lodestone Energy” or the “Company”) today announced it has acquired assets from Hibernia Resources III, LLC (“Hibernia”) to be operated by BCP Resources, LLC (“BCP Resources”).
Lodestone Energy is a vertically integrated fund focused on opportunities in the conventional oil and gas space. These assets are considered an ideal acquisition for the Company due to an excellent financial profile and top-tier performance in the Midland Basin. The assets span Reagan and Upton Counties, Texas, with 85 conventional and 21 legacy horizontal wellbores comprising over 2,000 MBOE of net PDP reserves with 63% liquids.
“The Hibernia assets are an excellent fit with our strategic objective to expand our footprint of operated conventional assets in the Permian Basin,” stated Barry Portman, Lodestone’s Managing Partner and BCP Resources CEO. “We’re privileged that Hibernia has placed their trust in us and we’re thrilled to continue the high-quality operation and expansion of these assets alongside Hibernia as they continue their growth strategy as a leading oil producer in the Midland Basin.”
The acquisition was funded by partners local to West Texas, combining private equity placement with a senior energy debt facility. AggieTech Capital (“ATC”) based in Midland and Masked Rider Capital (“MRC”) based in Lubbock anchored the equity placement and the debt facility was provided by Community National Bank (“CNB”) of Midland.
Embry Canterbury, CEO of Hibernia, stated, “The disposition of our legacy assets supports the development of Hibernia’s high-quality acreage position, and we were very pleased and impressed by BCP Resources’ operational expertise to pursue and close this transaction.”
Mark Bales, CEO of AggieTech, stated, “We are delighted to partner with BCP Resources and Lodestone Energy as they have deep roots and experience in the Permian Basin, as well as a talented staff of employees. We are confident this transaction will generate significant returns and future growth to our fund.”
Trey Thomason, Chief Investment Officer for Masked Rider Capital, stated, “MRC is excited to be affiliated with both the BCP Resources operating team and the Lodestone Energy Partners. We are certain that both teams value relationships with their partners and, combined with their solid and unique experience, they can pursue substantial growth in this sector.”
“Investing in our customers and the local community is our passion.” stated Amber Prieto, Vice President of Commercial Lending at Community National Bank. “A local oil and gas operator with significant experience in the area, partnered with West Texas equity sources, is an excellent fit, and we are pleased to support this project and look forward to their future growth.”
“This is just the beginning for us, and we are honored to work together with great local partners such as Aggie Tech Capital, Masked Rider Capital, and Community National Bank” added Portman, “Industry trends favor conventional asset roll-ups. Thousands of highly attractive conventional wells are available for the right operator when they can no longer scale with major oil and gas portfolio growth. We are excited about this acquisition and look forward to continuing to aggressively pursue similar opportunities to create value and invest in the local economy.”
Red Oaks Energy Advisors represented Hibernia’s sale of the assets. Field, Manning, Stone, Hawthorne & Aycock, P.C. and Nixon Legal Group PLLC represented Lodestone Energy and BCP Resources and Mani Little & Wortmann, PLLC served as legal counsel to Hibernia.
Lodestone is dedicated to acquiring and developing Permian Basin conventional oil and gas assets to unlock value for its investors. BCP Resources is Lodestone’s dedicated oilfield operator. These two entities offer over 100 years of combined experience in conventional oil and gas development and production. For more information, please visit www.lodestone-energy.com and www.bcpresourcesllc.com.
AggieTech Energy Services (“ATES”) was founded 2008 and became the largest privately owned pumping unit service company in the Permian Basin using a variety of fleet equipment, state of the art machine shop, and highly trained and experienced personnel. Utilizing similar top tier industry experience, ATES quickly expanded to include AggieTech Wellhead, and during the growth of these businesses, an energy capital fund was launched to invest in industry projects, AggieTech Capital. For more information, please visit www.aggietechcompanies.com.
Masked Rider Capital, LLC (“Masked Rider Capital” or “MRC”) is a multi-family office founded in 2012 focused on acquiring and investing in private companies. Masked Rider Capital proudly serves lower and middle market businesses in West Texas communities and the surrounding areas through innovative capital solutions. MRC provides capital in the form of control and non-control equity, debt and hybrid securities. The firm is industry agnostic and participates in real estate development opportunities. MRC is headquartered in Lubbock, TX. For more information, please visit www.maskedrider.com.
Community National Bank, established in 1984, continues to expand upon their original mission to provide a strong, locally owned, independent financial institution. The employees, officers and directors respect the traditional responsibility of a local bank to foster the development of its customers and thereby the community. Their focus on training, technology and service has helped to grow from their original location in south Midland to eleven locations throughout the market area. For more information, please visit www.cnbtx.bank.
Hibernia is an acquisition and development company focused on the exploration, growth and production of oil and natural gas assets. It is a portfolio company of NGP.
Lodestone Energy Partners
SOURCE Lodestone Energy Partners