Houston-based private equity (PE) firm Andros Capital Partners LLC said Wednesday (Aug. 25) it has closed a $150 million development drilling joint venture in the Permian Basin’s Spraberry and Wolfcamp formations in Midland County, TX.
Andros affiliate Andros Permian LLC is to fund the drilling program in a joint venture partnership with exploration and production (E&P) firm Midland-Petro DC Partners LLC (MPDC).
“MPDC has assembled a world-class position” in the core of the Permian’s Midland sub-basin, said Andros managing partner Phillip A. Gayle Jr. “This transaction underscores Andros’ commitment to investing in high-quality assets in partnership with talented operators.
“It also highlights our ability to construct a creative capital solution to enable our partner to advance their strategic objectives.”
The Permian is expected to attract the most capital by far among major U.S. oil and gas plays over the next two years, according to the most recent Borrowing Base Redeterminations Survey conducted by Haynes and Boone LLP.
The Permian rig count stood at 249 as of Friday (Aug. 27), nearly double the 125 recorded in the similar week last year, the latest rig count data from Baker Hughes Co. and Enverus showed.
The Andros news follows the announcement earlier in August of a $500 million investment from PE giant Kayne Anderson Capital Advisors LP to fund recently launched Lower 48 E&P Black Knight Energy LLC.
Privately held Bakken Shale pure-play Kraken Resources II, meanwhile, nabbed a $400 million-plus equity commitment from Kayne Anderson in late July to pursue oil-weighted upstream assets in the Williston Basin.
Dealmaking in the North American upstream segment has ramped up in recent months, with more than 40 mergers and acquisitions valued at around $33 billion tallied in the second quarter by Enverus.
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