OPPORTUNITY-AWARE: Domestic Energy Production
With deep expertise in natural resource development, expansion into domestic energy production was a natural fit. From 2008 to 2012 Black Mountain leased and sold over 200,000 net acres in emerging shale plays, building up a knowledge base that led to a $150 Million equity commitment with Natural Gas Partners (NGP). In March 2017, Black Mountain Oil & Gas sold Black Mountain Oil & Gas I LLC, an NGP-backed Permian Basin operating company, to Marathon Oil Corporation for $700 Million. Upon this successful monetization of assets, NGP and management formed Black Mountain Oil & Gas II LLC to pursue additional upstream opportunities together through Black Mountain Holdco’s NGP commitment, which has had >$500M funded to date.
Today, Black Mountain Oil & Gas combines expertise in geology, engineering, land, and acquisitions and development to target both conventional and unconventional oil and gas reservoirs. The company is currently building a leasehold position in the Delaware Basin in West Texas, focusing primarily on acquiring operated lease opportunities that are held-by-production.
Learn more at www.BlackMountainOilandGas.com.
Participation in domestic energy production is a mainstay natural resource opportunity. And today, driven by technological advances and cost-saving innovations like the use of in-basin frac sand, domestic energy production is stronger than ever with daily output reaching numbers not seen in 50 years. According to the Energy Information Administration, domestic energy production will continue to surge, reaching 11.2 million barrels of oil per day in 2019, helping meet the supply gap as worldwide demand is forecast to increase to 100.6 million b/d in 2019 compared with 97.8 million b/d in 2017 (International Energy Agency, July 2018).