Post Oak Energy to invest $100m in Sierra Resources’ subsidiary
Post Oak Energy Capital has pledged to invest $100m in US-based energy company Sierra Resources’ subsidiary Sierra EF as equity.
Sierra EF also received capital funding from affiliates of GSO Capital Partners, and the management team of its parent company.
Sierra is an exploration and production company focused on the acquisition and development of oil and gas properties in South Texas, US.
Post Oak Energy Capital managing director Frost Cochran said: “Having known the team at Sierra for decades, Post Oak is excited to partner with management and GSO to target the dry gas window of the Eagle Ford Shale.
“Management has an impressive track record of investing in and operating across a number of basins across the country, and is well positioned for success in the highly economic Eagle Ford Shale play.”
Founded in 1996, Sierra is currently funded by GSO and has been engaged in onshore basins operations.
In 2014, the company evaluated the unconventional resource potential of the Olmos and Eagle Ford producing horizons in South Texas.
The acquisition portfolio comprises a total of around 60,000 acres in La Salle and McMullen counties.
In addition, the energy company has interests in the Utica Shale, with an acreage position of 25,000 acres.