Black Ridge Oil & Gas Inc. and Merced Capital signed a definitive agreement to form an entity that will acquire and develop Williston Basin nonoperated assets, Black Ridge said July 23.
Merced will fund the joint venture (JV) with an initial $50 million target investment. Merced will approve investments, which will be managed by Black Ridge, the company added.
Black Ridge will receive a share in profits after investor hurdles are met, and will be able to co-invest up to 25% on acquisitions and capex. These co-investments will belong solely to it, Black Ridge added.
Black Ridge can also bid and acquire JV assets that are sold.
Through the JV, Black Ridge can participate in high-return capital projects without diluting shareholders, and create a long-term partnership with Merced.
Ken DeCubellis, CEO, said that the Teton project’s startup and the JV with Merced provide a good future for Black Ridge’s shareholders.
Black Ridge Oil & Gas Inc. and Merced Capital are both based in Minnetonka, Minn.
Recommended Reading
New US Rules Seek to Curb Leaks From Drilling on Public Lands
2024-03-27 - The U.S. Interior Department finalized rules aimed at limiting methane leaks from oil and gas drilling on public lands.
DOE Considers Technip, LanzaTech For $200MM ‘Breakthrough’ Technology Award
2024-03-25 - The U.S. Department of Energy funding will be used to develop technology that turns CO2 into sustainable ethylene.
Energy Transition in Motion (Week of March 22, 2024)
2024-03-22 - Here is a look at some of this week’s renewable energy news, including a new modeling tool for superhot rock.
EQT’s Toby Rice: US NatGas is a Global ‘Decarbonizing Force’
2024-03-21 - The shale revolution has unlocked an amazing resource but it is far from reaching full potential as a lot more opportunities exist, EQT Corp. President and CEO Toby Rice said in a plenary session during CERAWeek by S&P Global.