Lone Star Land & Energy

 

Portfolio

Investment: 
2010

Lone Star Land & Energy was a Dallas-based independent oil and gas company focused on the pursuit of acquisitions of producing properties with behind-pipe and drill-bit-oriented upside and acreage-and-drilling opportunities in low-risk resource play areas. Lone Star was formed by a team of seasoned E&P executives with over 100 years of aggregate experience in A&D, land, technical evaluation, geology and drilling/production in the Delaware Basin, Permian Basin, Williston Basin, Gulf Coast, East Texas and North Louisiana. 

After closing on an initial acquisition of producing properties in South and West Texas, Lone Star conducted an in-depth study of the Williston Basin and decided to pursue a sizeable acreage position in a targeted area of the Bakken Shale oil resource play in North Dakota. Over the course of the following 18 months, the team successfully pieced together an attractive 26,000-net-acre footprint in Dunn and Mountrail counties.

From late 2009 through early 2010, Lone Star partnered with an industry player and drilled eight gross (four net) wells with positive results. The board decided to capitalize on Lone Star’s positive drilling results and the industry’s increased appetite for oily assets by putting the assets up for sale. While the company took initial steps in initiating a marketed process, it ultimately accepted a pre-emptive offer from its partner in mid-2010 and sold its Texas producing properties in late 2010.

EnCap currently is partnered with core members of Lone Star’s management team through Lone Star II.