Stronghold Energy II Holdings, LLC, a newly formed oil and gas exploration and production company, today announced that it has received a line of equity financing of up to US$150 million from funds affiliated with Warburg Pincus, a global private equity firm focused on growth investing.
Formed in December 2017 and headquartered in Midland, Texas, Stronghold Energy II is focused on the Central Basin Platform of the Permian Basin and intends to acquire meaningful acreage positions for oil and gas development. The team expects to capitalise on its recent success in the region and apply its highly technical geological approach to exploiting areas across the Platform.
Stronghold is led by Steve Weatherl, an Exxon-trained geologist with extensive Permian experience and more than 35 years in the industry, including serving as Vice President of Exploration at another private equity-backed company where he built a Wolfcamp position that ultimately spanned approximately 50 000 acres in the Southern Midland Basin, and General Manager and Vice President of the Midland Division at EOG Resources, where he ran up to a 10-rig programme and invested more than US$500 million at attractive rates of return. Mr. Weatherl also served as Vice President of Exploration, USA at Pioneer National Resources and Chief Operating Officer at EnerQuest Oil & Gas.
Mr. Weatherl is joined by a senior team with a strong track record in the Permian including Travis Lain, Chief Operating Officer, who previously served as Operations Manager for the Midland Division at EOG Resources, and Caleb Weatherl, President and Chief Financial Officer, former Chief Financial Officer for Desert Royalty Company.
Mr. Weatherl commented, “We look forward to building this new enterprise focused on the Central Basin Platform, where we see many compelling opportunities. We are very pleased to be partnering with Warburg Pincus, a leading investor in the energy sector, with deep Permian experience and impactful investments helping drive the technological revitalisation and growth in the region. We are excited to have Warburg’s support in this new venture and look forward to building a successful enterprise.”
David Habachy, Managing Director, Warburg Pincus, said, “Steve and his team have extensive experience in the Permian, together with strong technical capabilities and drilling and completions expertise. We are excited to partner with such an impressive team and are confident in Stronghold’s ability to create value. We look forward to supporting the company as it pursues its strategy.”
Read the article online at: https://www.oilfieldtechnology.com/special-reports/23012018/stronghold-energy-ii-announces-equity-commitment-of-up-to-us150-million/