Certain affiliates of Och-Ziff Capital Management Group LLC (NYSE: OZM) have committed $75 million to Houston, TX-based Fortuna Resources Holdings LLC, with an option to increase to $150 million. The investment is focused on expanding Fortuna’s activities in the West Texas Permian Basin and related areas through acreage and asset acquisitions and subsequent development.
Aaron Davis, a co-founder of Fortuna and its president and CEO, is a petroleum engineer and most recently served as subsurface manager at Occidental Oil & Gas where he oversaw multiple Permian Basin drilling and leasing programs.
“We believe there are compelling investment opportunities in select regions of the Permian Basin for middle market situations given the favorable competitive environment, existing infrastructure and strong well economics that will support future development,” said Mark Bisso, managing director at Och-Ziff.
Och-Ziff has been investing in private energy since 2005, and has invested in excess of $1.5 billion in private energy investments. Och-Ziff’s dedicated private energy investment team focuses on middle market investments in the oil and gas upstream, midstream, and energy services sectors primarily in North America. The 11-person team is based in New York and Houston.
Established in January, 2016, Fortuna’s current operations are focused on the Permian Basin with an emphasis on the Delaware Basin and Central Basin Platform. Targets include the Bone Spring, Delaware Mountain Group and Wolfcamp formations.