Taking Advantage of Good Assets in a Good Location

Quality rock and good operations are just one piece of the equation Fulcrum Energy Capital Funds looks at when reviewing whether to purchase new assets. With our recent acquisition of more than 10,000 net acres in the Eagle Ford Shale Play, we looked at the bigger picture and saw an opportunity rife with upside for our investors.

The acquired assets, which are now operated by Pachira Oil & Gas, are producing approximately 90% crude oil. Crude from this area is designated as Louisiana Light Sweet (LLS) which typically trades at a premium to most crude oil produced in the United States. This premium pricing means that as operations improve, and costs come down, every new barrel of oil produced will be even more valuable to the Fulcrum shareholders than a barrel produced most anywhere else in the country.

In addition to producing a valuable crude variant, Pacheria’s assets also enjoy the added benefit of being located near one of the largest demand centers for its production. The Southern Texas assets are close to refiners and export centers in the Gulf of Mexico with ample capacity and demand for the company’s production meaning the company is unlikely to encounter any bottlenecks getting production to market.

This unique combination of high-quality assets producing a valuable commodity near a demand center makes the Eagle Ford assets a valuable addition to the Fulcrum portfolio. The firm believes that there is more opportunity for further add-on acquisitions in the area as well which will boost value provided to our shareholders.

Learn More About Pachira