Stronghold’s oil and gas strategy consists of systematic and high-frequency transactions in physical properties through partnering with local, in-basin, on-the-ground origination partners.
Key aspects of our investment strategy include:
- Focus on strong risk-adjusted returns
- Better insulation from commodity price volatility through rapid transaction pace and structural protection
- Combine investment and technical expertise to develop a technology-enabled, systematic approach to valuation
A Strong Partner
Stronghold brings capital and operating experience to the companies and entrepreneurs that partner with us. For capital partners, we bring technical depth, industry perspective and, frequently, financial alignment, to drive better investment results.
WHAT WE BUY
Leasehold, Mineral & Surface Ownership Positions
Surface Estate (Tract) refers to ownership rights
in a parcel of land that are limited to the surface.
Hydrocarbons (oil, gas,
etc.) are located below the
surface of a given plot of
land owned by the Mineral
Interest Owner. Ownership
of the hydrocarbons can be
separated from the
ownership of the Surface
Estate.
Each subsurface layer
(stratum) beneath the tract
can be drilled horizontally
and is distinct property with
potentially distinct owners /
leasehold.
Mineral Interest Owners control
the rights to produce, to sell, or to
lease the production rights to
E&P Operators in exchange for a
specified royalty rate and an
upfront bonus.
E&P Operators seek to produce Hydrocarbons
owned by Mineral Interest Owners. E&P Operators find
it attractive to purchase the Mineral Interests to
increase cash flow with each producing well.
Horizontal Wellbores drilled
by an E&P Operator in order
to produce Hydrocarbons can
result in revenue for the E&P
Operator and royalties paid to
the Mineral Interest Owner.
Horizontal Wellbores drilled
by an E&P Operator in order
to produce Hydrocarbons can
result in revenue for the E&P
Operator and royalties paid to
the Mineral Interest Owner.
Leasehold is created when a Mineral Interest Owner leases the right to explore and produce Hydrocarbons to an E&P Operator.
Leasehold is the foundation of an E&P Operator’s drilling
plan. The drilling plan cannot
proceed w/o the right to drill.
Drilling w/o a lease could
result in criminal trespass.