Riley Exploration Group LLC has acquired a 90% equity interest in Cinco Resources Inc. (CRI), effective May 19, through a share exchange with private equity funds managed by Yorktown Energy Partners. Riley also received an investment from funds managed by Yorktown to acquire a working interest in a new 25,000-acre horizontal oil play in the Permian Basin.
The CRI acquisition and Yorktown’s investment will enhance Riley’s oil and gas asset portfolio, and provide Riley with growth opportunities in the Texas Gulf Coast and Permian basins and the Oklahoma Arkoma Basin.
Pro forma for the CRI acquisition, Riley’s 2015 net production will increase to 1,600 Boepd. Riley was advised by Petrides & Co. LLC.