Houston oil startup gets rolling with $250 million infusion – Fuel Fix

HOUSTON – A New York private equity shop is pouring $250 million into a startup Houston oil producer called TRP Energy, which plans to buy land and fund drilling in U.S. oil fields operated by other companies.Building a portfolio of oil-rich land it doesn’t operate could allow the startup to assemble more stakes across multiple plays than if it tried to manage each property it bought. And there are a lot of oil producers who could benefit from bringing on a partner in the ongoing oil slump, TRP Energy President Randy Dolan said in an interview.“What we really want to have is a meaningful position in these plays,” Dolan said, referring to so-called non-operated working interest positions. He noted the strategy of acquiring those kinds of stakes could enable the firm to assemble acreage in the Delaware Basin and the Midland Basin in West Texas, the Eagle Ford Shale in South Texas and the Bakken Shale in North Dakota. “We’re looking today at where rigs are running. It’s a sign they’re still economic.”TRP Energy CEO Trent Foltz says if the right deal came along, his company could likely draw more funding from its investors if it needed it. The firm is targeting deals worth roughly $100 million, he said.


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