Peak 10 Energy Holdings LP has been announced as a new investment platform for the acquisition of long-lived oil and gas development assets in the continental United States.
The newcomer from Houston, Texas is backed by Browning Oil and Gas Co. Inc., Legacy Star Capital Partners and several private family organizations, according to its website.
“Peak 10’s asset base consists of non-operated oil and gas properties in Reeves, Fisher, Scurry, Gaines, Dawson and Andrews counties, which include more than 100 producing wells and a multi-year drilling program of undeveloped level 1 drilling,” he said. in a press release last week.
Peak 10 said it had completed its first acquisition on Aug. 23 involving non-operated upstream oil and gas assets and associated water handling and recycling assets on the eastern shelf of the Permian Basin. The assets, in Fisher and Scurry counties, Texas, were acquired from an unnamed private seller.
“The formation of Peak 10 and the closing of the Eastern Platform transaction represent transformational moments in our ability to create scale by consolidating dislocated oil and gas assets,” Peak 10 CEO Mark Paull said in a statement
Peak 10’s website says it “was founded in 2023 by the combination of several Permian Basin limited partnerships together with a substantial contribution of equity capital.”
The site says Peak 10 is currently developing the Strawn Formation. “With an asset base spanning approximately 57,150 net acres and more than 13,950 net mineral acres, Peak 10 Energy operates a multi-year inventory of Permian development wells,” the site states.
The company says on its website that it aims to “become the private company consolidator of choice, providing stable returns for long-term investors and an exit strategy for short-term investors.” The site also says that Peak 10 is targeting private mergers.
“Peak 10’s capitalization consists of (i) cash, (ii) contributed assets and (iii) future capital commitments from Legacy Star Capital Partners, a Texas-based asset management firm, as well as (iv) financing of debt from Prudential Private Capital, Prudential Energy Capital Partners, LP., and Production Lending, LLC, which together are estimated to exceed $500 million in on-balance sheet resources,” the press release said.
Legacy Star Capital is a private equity firm “focused on private debt and equity investment opportunities in the energy, real estate, infrastructure, manufacturing, specialty finance and technology sectors,” Legacy’s website says Star Capital.
Legacy Star Capital did not respond to a request for confirmation and comment from Rigzone about its participation in the new platform.
Browning, one of Peak 10’s sponsors, has active prospects in the Northern Midland Basin and Eastern Permian Shelf, and participated in more than 600 wells in the Austin Chalk play in Texas, according to Browning’s website. “Browning’s business plan incorporates a combination of exploration, exploitation and reserve acquisitions based on available opportunities and market conditions,” the site says. “Browning’s relatively small size, along with a strong balance sheet and technical staff, give it the ability to quickly pursue opportunities in its chosen areas of interest, primarily Texas.”
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