MIDLAND, Texas--(BUSINESS WIRE)--True Oil Company LLC announced today that it has secured a total of $500 million in commitments for equity capital from an investor group, led by Los Angeles-based Ares Management, which includes True Oil management and other institutional investors. True Oil will use these funds to acquire and develop oil and gas assets in the Permian Basin.
True Oil is a newly formed company with an experienced management team led by industry veterans, Ronnie Scott, Keith Maberry, Michael Rhoads, Will Kiker, and Jamie Rhoads. The True Oil team has an extensive track record of identifying, purchasing, developing, operating and selling oil and gas assets in the Permian Basin, where they have drilled approximately 1,000 wells over the last decade.
“We are excited about our commitment to True Oil and its management team,” said Nate Walton, Chairman of the Board at True Oil and a Principal in the Private Equity Group at Ares Management. “With Ronnie and the team’s deep experience in the Permian Basin, we are confident in True Oil’s ability to acquire and develop oil and gas assets and become a leading operator in this particularly attractive area.”
Prior to forming True Oil, Mr. Scott was President and Chief Operating Officer of several Midland-based oil and gas companies including Henry Petroleum, Henry Resources, and HPC Energy. Working as a team, the True Oil managers have been responsible for close to $3 billion of development, acquisition, and divestiture activity within the Permian Basin over the last few years.
“The combination of our experienced oil and gas team along with dedicated capital and the Ares Private Equity team’s success in building and growing companies is a powerful pairing,” said Mr. Scott. “We are excited about the opportunity to continue our development activity in the Permian Basin as demand for domestically-produced energy grows in the U.S.”
About True Oil
True Oil Company LLC is a Midland, Texas-based oil and gas acquisition and development operating company focused primarily on the Permian Basin area of west Texas and eastern New Mexico.
About Ares Management LLC
Ares Management LLC is a global alternative asset manager and SEC registered investment adviser with approximately $68 billion of committed capital under management and approximately 720 employees as of September 30, 2013. Ares is headquartered in Los Angeles with professionals located across the United States, Europe and Asia and invests across the capital structure – from senior debt to common equity. Ares' investment activities are managed by dedicated teams in its Capital Markets, Private Debt, Private Equity and Real Estate investment platforms. Ares Management was built upon the fundamental principle that each platform benefits from being part of the greater whole. This multi-asset class synergy provides its professionals with insights into industry trends, access to significant deal flow and the ability to assess relative value. For additional information, visit www.aresmgmt.com.