HomeBound Resources Makes Investment in Texas’ Midland Basin
HomeBound Resources LLC, a Texas-based firm focused on oil and gas projects, has completed a $4.4 million acquisition in Texas’ Midland Basin—part of the greater Permian Basin.
HomeBound Resources LLC, a Texas-based firm focused on oil and gas projects, has completed a $4.4 million acquisition in Texas’ Midland Basin—part of the greater Permian Basin.
The acquisition was made on behalf of an energy-focused investment fund, sponsored by HomeBound and offered through private equity firm Resolute Capital Partners. The company claims that the fund “invests in productive regions with known oil and gas fields that are too complex for small companies and not large enough for many public companies.”
HomeBound estimates the acquisitions’ average lifting cost is below $15 per barrel.
The acquisition spans Martin, Reagan, Lea, Glasscock, and Midland Counties, and includes 55 drilled wells and 106 acres of proven undeveloped reserves (PUDs) with roughly 50 locations at varying depths, the company said. The company claims that the acquisition was made at a “significant discount to its estimated pre-COVID-19 valuation.”
“As an opportunistic investor, we seek opportunities from distressed sellers, not distressed assets…,” said Stefan Toth, chief executive officer of HomeBound Resources. “With reduced demand brought on by COVID-19, we’ve taken extra measures to increase our storage capacity, enabling us to continue production while waiting for prices to rebound.”
HomeBound is involved in primary and secondary production, acquisition, development, and exploration of oil and gas projects in Texas, Louisiana, New Mexico, and Oklahoma, and has 100,000 acres under management.
Resolute Capital is a private equity firm with offices in San Francisco, Dallas, and Minneapolis.
