Bellatorum Resources LLC recently launched a $100 million fund with capital earmarked for buying productive oil and gas royalties in Texas.
Based in Spring, Texas, Bellatorum is a veteran-owned and operated professional service firm specializing in the acquisition of land and royalty interests. Chris Bentley, the company’s founder who also serves as its president and CEO, said he’s seeing a prime investment opportunity in the current environment.
“Right now, we are seeing discounts in the marketplace like never before so the barriers to entry are low for investors,” Bentley said in a statement. “Obviously, the uncertainty and down market won’t last forever, so now is the time to buy.”
Capital raised for its latest fund, Sentinel Energy Investments LP, will be used to purchase oil and gas royalties in Texas, including in the Permian Basin, Eagle Ford Shale, Haynesville Shale, and Barnett Shale plays. Bellatorum, which has a track record of success acquiring oil and gas royalties in the Lone Star State, mitigates its risk profile by investing in mineral rights with current oil and gas production and cash flow, according to Bentley.
“The advantage in this approach is that we are not taking any speculative risks and have an immediate free cash flow component in our investment strategy,” he said. “This tactic provides a lower risk exposure in the energy sector because these assets are real property and ownership is perpetual.”
“There is no liability associated with the maintenance and operation of the oil and gas wells,” he added.
Investments into Sentinal, Bellatorum’s eighth fund, are being accepted through the week of Dec. 14. The minimum investment is $10,000, and up to 2,000 accredited investors will be allowed to participate.
Investors will receive an 8% preferred annualized return before Bellatorum is able to start sharing in the profits. After the preferred return is met, all profits will then be split at a rate of 80/20 with 80% going to the investor, and 20% to Bellatorum. A 15%-20% IRR, or annualized return for investors, is being targeted by Bellatorum.
Capital invested in Sentinel may be locked in for five years with two, one-year discretional extensions. However, it is possible that an exit could happen much earlier, as has been the case in previous funds managed by Bellatorum, according to the company release on Nov. 24.
Capital Engine, a global leader in funding private capital and alternative investments, provided the online fundraising platform and investor management solution for the Sentinel fund.
CBP Resources retained TenOaks Energy Advisors for the sale of Permian Basin operated, conventional oil properties on the Central Basin Platform and Northern Shelf closing Nov. 19.
Rio Oil and Gas II retained Detring Energy Advisors for the sale of a core Delaware Basin asset in Ward County, Texas, operated by Chevron in an offering closing Nov. 20.
Ventana Partners retained RedOaks Energy Advisors for the sale of nonoperated properties located primarily in the Delaware Basin.