True Oil Co. LLC announced it has secured $500 million in commitments for equity capital from an investor group led by Los Angeles-based Ares Management. Funds from the investor group, made up of institutional investors and including True Oil management, will be used to acquire and develop oil and gas assets in the Permian Basin.
Based in Midland, Texas, True Oil is a newly formed company with a management team led by industry veteran Ronnie Scott. Prior to forming True Oil, Scott was president and chief operating officer of several Midland-based oil and gas companies, including Henry Petroleum, Henry Resources and HPC Energy.
The True Oil management team has an extensive track record of acquiring, developing and selling oil and gas assets in the Permian, where they have drilled approximately 1,000 wells over the last decade. In addition to Scott, management includes Keith Maberry, Michael Rhoads, Will Kiker and Jamie Rhoads.
True Oil’s management team has been responsible for close to $3 billion of transactions in the Permian over the last few years.
Nate Walton, chairman of True Oil and a principal in the private equity group at Ares Management, expressed confidence in True Oil’s ability to acquire and develop assets and become a “leading operator in this particularly attractive area.”