Bayou City Energy has acquired a stake in High Mesa Inc., an established operator in Oklahoma's Stack Play, the company said Sept. 12.
BCE-MESA Holdings LLC, an affiliate of the Houston company, completed the purchase of preferred stock in High Mesa for an undisclosed amount.
High Mesa is a privately held company with interests in oil and gas assets, notably Alta Mesa Holdings LP. Alta Mesa has more than 95,000 net acres in the Stack in Kingfisher County, Okla., and is currently producing about 16,000 barrels of oil equivalent per day, the release said.
The common stock is owned by management of High Mesa, and the preferred stock is owned by BCE-MESA and HPS Investment Partners LLC. BCE-MESA includes an investment from affiliates of Intervale Capital.
In connection with the investment, High Mesa appointed William McMullen, founding partner of Bayou City Energy, to its board of directors. Bayou City Energy previously formed a drilling joint venture with Alta Mesa and HPS in January, McMullen said.
RELATED: Alta Mesa Deal To Drill 40 Wells With Costs Borne By Bayou
"We value our relationship with Bayou City Energy, and we believe their team is the ideal partner to invest alongside our existing partner, HPS, and to help our company continue to achieve its objectives in the Stack," Hal Chappelle, Alta Mesa's CEO, said in a statement.
Bayou City Energy is a private equity firm focused on making investments in the North American upstream oil and gas sector.
HPS is a global investment firm with a focus on non-investment grade credit. As of August, HPS has more than $31 billion of assets under management and has invested more than $3 billion in the energy and power industries since inception.
Intervale Capital is an energy-focused private equity firm with offices in Houston and Boston. The firm has raised $1.3 billion of committed capital since its inception in 2006 and is currently investing from its third fund, the release said.
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