Anvil Energy provides capital outlet to Bakken, Permian E&Ps

By Luke Geiver | August 13, 2019

Anvil Capital Partners has provided capital for two unconventional oil and gas entities looking to grow their operations. "We look to solve the gap between bank lenders, which have largely pulled back from the micro and mid-cap market, and the typically more expensive mezzanine and preferred equity providers,” said James Avery, a partner with the specialist in private capital lending that has offices in New York and Houston.

Following a deal with Samson Oil and Gas in the Bakken for $33.5 million, Anvil has now provided $11 million to Vermillion Cliffs Partners to support them in the acquisition of producing assets in the Permian.

While many investors have pulled back in 2019 from expanding their portfolios with unconventional energy shares and investments, Anvil has stepped in.

Avery said the company is an extremely competitive alternative “to other sources of capital while maintaining a comfortable pricing level for the company tailoring the cost to fit production and cash-flows as we did with Samson and VCP.”

Rob Lindermanis, head of origination in Anvil's Houston office said, "The opportunity to support both of these companies, as a long-term partner, in development of their underinvested assets is a positive one for all parties involved."

"Samson's undeveloped reserve base offers a tremendous opportunity for value creation in this price environment," said David O'Driscoll senior partner and head of Anvil's Houston office, "We were very happy to bring this deal over the finish line and allocate the right sized capital to allow Samson to reach its potential."

The recent investments by Anvil are part of a larger, $150 million investment plan targeting three areas: operators looking to acquire, refinance or further develop assets; first lien loans; and for upstream exploration and production companies with strong track records and development projects.