Firebird Marketing Seeks Notes for Drilling and Royalty Buys
The oil-and-gas operator is offering unlisted notes to fund PhoenixOp drilling, mineral and working-interest purchases, and working capital.
Firebird Marketing, LLC is offering notes to finance a three-pronged oil-and-gas strategy that combines operated drilling, royalty assets, and non-operated working interests through PhoenixOp, Firebird Services, and Firebird Marketing. The company said it will use substantially all of the net proceeds to invest in PhoenixOp or finance potential drilling and exploration, to purchase mineral rights and non-operated working interests and other assets, and for working capital.
Direct drilling is currently focused on development in the Williston Basin in North Dakota and Montana and the Powder River and Denver-Julesburg Basins in Wyoming. Royalty and working-interest acquisitions have historically targeted the Williston, Permian, Powder River, Uinta, and Denver-Julesburg Basins, and the company said it is agnostic as to geography and prioritizes operational and asset potential. It said it began operations with a specialized software system used to identify, analyze, underwrite, transact, and manage oil and gas assets, acquired its first mineral interest, and later expanded its team. It said it commenced direct drilling and spudded its first wells, with a first owned well later producing hydrocarbons, and that it expects those operations to be a core component of the business going forward.
The notes will be issued in registered form, are not listed on any exchange or quotation system, and have no established public market. Holders may transfer only with the company’s prior written consent, which it may grant at its sole discretion. The company said investors must generally meet minimum financial suitability standards and should be prepared to hold the notes to maturity. Crescent is offering the notes on a commercially reasonable efforts basis and intends to close sales on a weekly basis.
The company also described product sales, mineral and royalty revenues, purchased crude oil sales, and water services among its revenue lines, alongside operating costs including cost of sales, depreciation, depletion, and amortization, and selling, general, and administrative expenses. It said it has grown acreage underlying its royalty interests and employee headcount since its early mineral-interest acquisitions, and that E&P operators on its properties have drilled additional productive wells on that acreage. It said it expects direct drilling to remain a core part of the strategy as it pursues the offering.