Post Oak commits $40 million to Core Minerals
Houston-based Post Oak Energy Capital LP has committed $40 million in equity capital to fund corporate growth and acquisitions at Core Minerals Management II LP.
Post Oak funded $10 million to the Evansville, Ind.-based company during a November closing, and the remaining $30 million will be available to support future work.
Clint Wetmore, a Post Oak managing director, and Ryan Mathews, a Post Oak partner, led the investment.
Core Minerals operates in and around the Illinois Basin and currently produces about 650 barrels of oil per day. The company’s existing activities include long- life oil production from conventional reservoirs and aggregating and revitalizing existing producing fields from legacy producers.
“From our operating base in Indiana, we are able to generate low-risk, low-cost production growth,” Jim Rode, Core’s president and CEO, said in a Monday statement. “Partnering with Post Oak provides us with the capacity to fund these unique opportunities on a timely basis.”
Established in Houston in 2006, Post Oak pursues private equity investments primarily in the upstream sector of the oil and gas industry in North America.
Similar to other private equity firms in Houston’s energy space, Post Oak has seen a surge of activity during the past year as companies need capital to unleash new technology in the development and production of vast domestic shale reserves.