California Resources Corp. (NYSE: CRC) is partnering with Benefit Street Partners LLC to accelerate the development of multiple producing oil fields in the Golden State.
The Los Angeles-based company said Feb. 16 it formed a joint venture (JV) with Benefit Street for the investment of up to $250 million for the development of opportunities in its conventional and unconventional assets.
Benefit Street will make an initial $50 million investment to be used for drilling activities across properties subject to the JV. The firm will make subsequent investments in tranches up to $50 million over two years at the discretion of the JV partners.
“This joint venture is an excellent opportunity for CRC to accelerate development of CRC’s vast underdeveloped resource base and advance our long-term deleveraging efforts," Todd Stevens, president and CEO of California Resources, said in a statement.
California Resources' portfolio includes 2.3 million net acres with 30,900 identified gross locations, according to the company's fourth-quarter presentation. The assets consist of acreage in California's San Joaquin, Los Angeles, Ventura and Sacramento basins.
The JV's initial investment is expected in the next two weeks, subject to customary conditions, the company said.
Recommended Reading
Going with the Flow: Universities, Operators Team on Flow Assurance Research
2024-03-05 - From Icy Waterfloods to Gas Lift Slugs, operators and researchers at Texas Tech University and the Colorado School of Mines are finding ways to optimize flow assurance, reduce costs and improve wells.
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
AI Poised to Break Out of its Oilfield Niche
2024-04-11 - At the AI in Oil & Gas Conference in Houston, experts talked up the benefits artificial intelligence can provide to the downstream, midstream and upstream sectors, while assuring the audience humans will still run the show.
TotalEnergies Rolling Out Copilot for Microsoft 365
2024-02-27 - TotalEnergies’ rollout is part of the company’s digital transformation and is intended to help employees solve problems more efficiently.
Axis Energy Deploys Fully Electric Well Service Rig
2024-03-13 - Axis Energy Services’ EPIC RIG has the ability to run on grid power for reduced emissions and increased fuel flexibility.