New Oil and Gas Royalties Firm Forms with $500 Million Commitment

Sierra Energy, a new mineral and royalty acquisitions company formed through a partnership between Providence Energy and Oaktree Capital Management, will target opportunities throughout the continental U.S.

Hart Energy Staff
New Oil and Gas Royalties Firm Forms with $500 Million Commitment

Currently, Providence owns and/or manages interests in nearly 2 million gross acres of minerals, with interests in over 10,000 producing wells. (Source: Hart Energy)

A new mineral and royalty acquisitions company, Sierra Energy Holdings LLC, recently launched, backed with $500 million in equity commitments through a new partnership between Providence Energy Ltd. and funds managed by Oaktree Capital Management LP.

Providence, a privately held energy investment and management company formed in 1993, will serve as the service provider for Sierra Energy Holdings. The company was originally formed to acquire and manage mineral, royalty and nonoperated working interest assets throughout the U.S.

However, in 2010, Providence began investing in renewable energy resources, including wind, hydropower and alternative fuel-based power generation. By early 2015, Providence had further differentiated itself by forming Providence Energy Operators LLC, an E&P company primarily focused on direct investments in working interest assets in the most profitable oil and gas regions across the country, according to a release by the company on Sept. 8.

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