May 27, 2020, 13:03 ET
IRVING, Texas, May 27, 2020 /PRNewswire/ -- HomeBound Resources, LLC ("HomeBound"), announced today the company completed a $1.4 million acquisition, consisting of a 25% non-operating interest in Eddy County, New Mexico, located in the Wolfcamp shale of the northern Delaware Basin. The investment was acquired at a significant discount to its estimated pre-COVID-19 valuation of $5.0 million and demonstrates HomeBound's ability to quickly acquire premium assets from distressed sellers. The investment was made on behalf of an energy-focused investment fund, sponsored by HomeBound and managed by Resolute Capital Partners, that invests in productive regions with known oil and gas fields that are too complex for small companies and not large enough for many public companies.
"At HomeBound, we work to take advantage of market downturns and seek opportunities in oil and gas acquisitions during times when other corporations are forced to sell," said Stefan Toth, CEO of HomeBound Resources. "The wake of COVID-19 and the oil trade war has created one of the best buying opportunities in modern history, and HomeBound intends to take advantage of the discounted pricing. Our highly-skilled and dynamic team, coupled with advanced technology, enables us to generate current positive cash-flows with potentials for high gains of profit during these times of unprecedented low energy prices."
The investment interests are located in the Wolfcamp section of the northern Delaware Basin, which along with the overlying Bone Spring shale hold an estimated 46.3 billion barrels of oil, according to a U.S. Geological Survey. The site consists of nine wells that are equipped with 2-mile Wolfcamp laterals. We expect drilling to be complete in Q4 of 2020, and the wells on-line by early 2021.
"We are excited to once again team with HomeBound Resources as a leading partner of our energy platform," said Thomas Powell, senior managing partner and founder of Resolute Capital Partners. "The strength of HomeBound's team includes industry professionals with work histories from companies from ExxonMobil, XTO Energy, and Apache, to the Texas Railroad Commission and JP Morgan Chase. Proven executives - executing a disciplined approach of targeting oil and gas projects, continually looking for profitable opportunities that align with proven risk management methods."
About HomeBound Resources, LLC
HomeBound is a Texas-based corporation involved in primary and secondary production, acquisition, development, and exploration of oil and gas projects in Texas, Louisiana, New Mexico, and Oklahoma. HomeBound's team of business professionals, engineers, geologists, and geophysicists has over 386 years of combined oil and gas experience and over 100,000 acres under management.
About Resolute Capital
Resolute Capital Partners is a private equity firm with offices in San Francisco, Dallas, and Minneapolis. It employs a seasoned executive team that has placed more than $3 billion in institutional-grade and private securities investments throughout their careers. Resolute Capital contributes professional expertise and multi-level support towards companies that help them realize their vision in structuring transactions and offers proven management techniques that yield flexibility and opportunity. By partnering with issuers beyond Wall Street, Resolute Capital is bringing capital to worthy projects.
For more information, please visit www.hb-resources.com and www.resolutecapitalpartners.com.
SOURCE HomeBound Resources
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