BlueRock Energy Capital II, LLC

  • The Unique Capital Partner for Small Producers

case-studies-header

Clients use BlueRock capital to achieve explosive growth in their business

Case Study No. 1

Team Profile:    
A start-up entity with experienced oil and gas professionals and minimal overhead requirements.    

Deal:
Acquisition of 35 proved developed producing (“PDP”), stripper wells on 25 leases in 13 fields through 6 counties in central Texas with 135 BOPD in production for $3.5 million and a development plan that included 5 proved undeveloped (“PUD”) wells for $800,000 for a total capital requirement of $4.3 million

Value Added:    
Our client’s production increased by more than 75 BOPD, more than 50%, due to the drilling and production enhancement work completed by the producer using BlueRock’s growth capital. During our time with the client, we also collaborated on multiple partial sales of non-material properties to high-grade operations.
 
Big Picture:
BlueRock ultimately provided approximately $9 million for the initial acquisition, the drilling of 7 PUD wells, the acquisition of additional working interests in operated wells, production enhancement projects, facilities modifications, and working capital.

By choosing BlueRock’s growth capital to fund the continued development of the properties, our client was able to grow his production and reduce his coverage ratio to a point where he was able to establish a senior credit line with a traditional lender and realize significant cash flows from the property. This would not have been possible without BlueRock’s growth capital to fund his continued development.

Case Study No. 2

Team Profile:
A small firm with experienced oil/gas professionals; minimal overhead requirement from funded property.
 
Deal:
Total initial funding was $740 thousand, which was used to retire $640 thousand of bank debt and to re-establish six shut-in wells. Initial production was 137 BOPD.
 
Value Added:
Over a five-year period, the Producer was able to use BlueRock’s growth capital to eliminate a personal guarantee at his bank, make several strategic acquisitions, and execute numerous development projects.  These activities added significant net production to the producer, and provided the producer with the additional cash flow required to drill many more wells and created an outstanding amount of value.

Big Picture:
By choosing BlueRock’s Growth Capital to fund his development versus selling his equity or a working interest, the producer was able to retain a disproportionate amount of the upside.  BlueRock ultimately provided him with $7.1 million for 5 small acquisitions, the drilling of several exploration and development wells, numerous workovers and various amounts for working capital.  His production ultimately increased to more than 680 BOPD, of which he divested half for $11 million and paid off his balance with BlueRock of $845 thousand.