10 December 2013, News Wires – A Los Angeles-based investment fund is putting up $500 million for a new company that aims to buy and develop assets in Texas’ Permian basin.
True Oil gets its private-equity backing from Ares Management and is led by industry players including Ronnie Scott, a former chief operating officer and president at Henry Petroleum and Henry Resources of Midland, Texas.
“With Ronnie and the team’s deep experience in the Permian Basin, we are confident in True Oil’s ability to acquire and develop oil and gas assets and become a leading operator in this particularly attractive area,” said Nate Walton, a principal in Ares’ private-equity group who will serve as board chairman for the venture.
Also on the team are Keith Maberry, Michael Rhoads, Will Kiker, and Jamie Rhoads, who along with Scott have contributed up to $3 billion in dealmaking in the region in recent years, the company said.
“We are excited about the opportunity to continue our development activity in the Permian Basin as demand for domestically-produced energy grows in the US,”Scott said in a statement.
Ares also has offices across Europe, Asia and Australia and about $68 billion under management.
Henry Petroleum and its affiliates were bought out by fellow Texas player Concho in 2008 by a $565 million deal.
– Upstream
