New Oil, Gas Acquisition Platform Launches in USA

Peak 10 Energy Holdings LP has announced itself as a new investment platform for the acquisition of long-life oil and gas development assets in the continental USA.

The Houston, Texas-based newcomer is supported by Browning Oil and Gas Co. Inc., Legacy Star Capital Partners and several private family organizations, according to its website.

"Peak 10’s asset base consists of non-operated oil and gas properties in Reeves, Fisher, Scurry, Gaines, Dawson and Andrews Counties, including over 100 producing wells and a multi-year drilling program of tier 1 undeveloped drilling opportunities", it said in a press release last week.

Peak 10 said it had completed its first acquisition August 23 involving non-operated upstream petroleum and gas assets and associated water handling and recycling assets in the Permian Basin's Eastern Shelf. The assets, in the Texas counties of Fisher and Scurry, were acquired from an unnamed private seller.

“The formation of Peak 10 and the closing of the Eastern Shelf transaction represent transformational moments in our ability to create scale by consolidating dislocated oil and gas assets", Peak 10 chief executive Mark Paull said in a statement.

Peak 10's website says it "was founded in 2023 by the combination of several Permian Basin limited partnerships along with a substantial contribution of equity capital".

The site says Peak 10 is currently developing the Strawn Formation. "With an asset base spanning approximately 57,150 net acres and over 13,950 net mineral acres, Peak 10 Energy manages a multi-year inventory of Permian development wells", the site states.

The company says on its website it aims "to become the private company consolidator of choice providing a stable return for long-term investors and an exit strategy for shorter-term investors". The site also says Peak 10 targets private mergers.

"Peak 10’s capitalization consists of (i) cash, (ii) contributed assets and (iii) future capital commitments from Legacy Star Capital Partners, a Texas-based asset management firm, as well as (iv) debt financing from Prudential Private Capital, Prudential Energy Capital Partners, LP., and Production Lending, LLC, which in aggregate are estimated to exceed $500 million in balance sheet resources", the press release said.

Legacy Star Capital is a private equity firm “focused on private debt and equity investment opportunities in the Energy, Real Estate, Infrastructure, Manufacturing, Specialty Finance, and Technology sectors”, the website of Legacy Star Capital site says.

Legacy Star Capital has not responded to a Rigzone request for confirmation and comment on its participation in the new platform.

Browning, one of Peak 10’s backers, has active prospects in the Northern Midland Basin and the Permian Eastern Shelf, and participated in over 600 wells in Texas’ Austin Chalk play, according to the Browning website. “Browning’s business plan incorporates a combination of exploration, exploitation and reserve acquisitions depending upon the available opportunities and market conditions”, the site says. “Browning’s relatively small size, coupled with a strong balance sheet and technical staff, gives it the ability to quickly pursue opportunities in its chosen areas of interest, predominantly Texas”.

To contact the author, email jov.onsat@rigzone.com