A Development Capital Resources LLC (DCR) subsidiary said Wednesday it is partnering in the Permian Basin via a $165 million joint venture (JV) to target oil and gas in the Wolfcamp formation.

A DCR subsidiary, sponsored by Ares Management Corp. affiliate funds, is participating through 2020 as a working interest owner with the undisclosed private explorer to drill and complete wells. No other details were provided.

“This transaction represents a continuation of our strategy of participating in energy sector joint ventures with quality operators in established basins,” said DCR President Ronnie Scott. “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.”

The latest deal is DCR’s fourth transaction in the energy space, said DCR COO Matt Loreman.

“In each case, we have been able to structure a creative solution tailored to the needs of the operator,” he said. “While the energy investment space remains challenging, it has been enjoyable to work directly with quality companies to find investment solutions that work for them and for DCR. We look forward to continuing to grow our portfolio of nonoperated partnerships.”

Ares partner Gary Levin said the JV “reflects the flexible capital approach” of the private equity firm, which is able to “customize transactions to the needs of operators. We look forward to finding additional ways to utilize the scale and creativity of our platform to provide attractive capital solutions to the energy industry.”

DCR was formed in early 2017 to provide capital to the North American exploration and production industry. In partnership with Ares funding, it said its four energy sector transactions to date represent more than $1.3 billion to acquire and fund participating interests in JVs for projects in California, Oklahoma and Texas.

Last year DCR partnered with Los Angeles-based independent California Resources Corp. (CRC) with an $800 million investment for midstream infrastructure in California. Under the agreement, DCR invested $750 million in CRC and purchased 2.34 million common shares for $50 million, or $21.33/share.

The CRP JV included an infusion into the 500 MW Elk Hills natural gas-fired power plant and 200 MMcf/d cryogenic gas processing plant near Bakersfield. CRC also agreed to purchase power and gas processing.