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Fulcrum Energy's Pachira Oil & Gas II Closes on Acquisition

Gasoil News - Published on Fri, 18 Oct 2019

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Fulcrum Energy Capital Funds announced the closing of an acquisition by their newly formed portfolio company, Pachira Oil & Gas II. The acquisition consists primarily of operated oil and gas assets including over 60 wells and 9,000 net acres of leasehold, which was previously owned by O’BENCO IV, LP. The assets were purchased at an attractive valuation through a §363 sale as part of O’BENCO’s Chapter 11 bankruptcy proceeding in Bankruptcy Court for the Eastern District of Texas.

Fulcrum anticipates the acquisition will generate immediate double-digit, unleveraged cash-on-cash returns through existing asset level free cash flow and expects to realize substantial upside available through capital-light operations optimization including cost reduction initiatives. This transaction, combined with the distressed valuation at which the assets were purchased, make the O’BENCO assets an ideal acquisition target that is consistent with Fulcrum’s value-oriented investment strategy.

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Posted By : Rabi Wangkhem on Fri, 18 Oct 2019
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