Development Capital Resources LLC (DCR) formed a multibillion-dollar Permian Basin joint venture (JV) set to deploy capital in the bountiful Wolfcamp shale play.

On June 19, DCR said it had agreed to invest up to $165 million in the JV for the drilling and development of the Permian’s Wolfcamp formation. As part of the agreement with an unnamed private operator, the company will participate in the JV as a working interest owner.

Backed by Ares Management Corp., DCR focuses on participating in nonoperated JVs throughout the North American E&P industry. At the time of its formation in 2017, President and CEO Ronnie Scott said DCR, which has offices in Houston and Midland, Texas, had a “substantial amount of capital available” for investments that included but weren’t limited to drilling JVs, nonoperated working interests and royalty participation.

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