Fulcrum Energy Capital Funds has formed Pachira Oil & Gas, which is focused on the development and production of oil in South Texas. Also, Pachira has acquired over 10,000 net acres of leasehold in the Eagle Ford Shale Play in South Texas. No financial terms were disclosed.
DENVER, July 15, 2019 /PRNewswire/ — Fulcrum Energy Capital Funds today announced the formation of Pachira Oil & Gas (“Pachira” or “the Company”), a new portfolio company, and Pachira’s acquisition of over 10,000 net acres of leasehold in the Eagle Ford Shale Play in South Texas. The assets include existing production comprised of approximately 90% oil, from more than 20 net operated horizontal wells.
The addition of Pachira Oil & Gas gives Fulcrum increased exposure to the premium priced Gulf Coast crude market with Louisiana Light Sweet (LLS) crude trading more closely with the international Brent pricing benchmark than with West Texas Intermediate. The high-quality resource is also located near refining and export demand centers in the Gulf of Mexico.
“The Eagle Ford assets were acquired at an attractive valuation based only on existing production and current cash flow from a seller that was experiencing financial distress,” said Fulcrum Energy Capital Funds President Brad Morse. “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.”
About Fulcrum Energy Capital Funds
Fulcrum Energy Capital Funds is a Denver, Colorado-based private investment firm focused on direct lower middle market oil and gas investment opportunities in North America. The Fulcrum Funds target privately-negotiated, structured equity, credit, and asset level investments. Fulcrum currently manages more than $100 million in committed capital under a team with more than 70 years of experience across hundreds of energy industry deals. For more information, please visit www.fulcrumef.com.
About Pachira Oil & Gas
Pachira Oil & Gas is a portfolio company of Fulcrum Energy Capital Funds with assets located in the Eagle Ford Shale Play. The Company is focused on the development and production of oil in South Texas. The name of Pachira Oil & Gas was inspired by the pachira aquatica which is also known as the Money Tree and is an age-old token of good luck and an invitation to good fortune.