Phoenix Capital Group Files to Sell Notes for Drilling and Royalty
The oil and gas company is offering unlisted notes to finance operated wells, mineral rights, and working capital.
Phoenix Capital Group Holdings, LLC, an oil and gas company, filed a prospectus to sell notes that it said it would use substantially all of to invest in its PhoenixOp unit, finance drilling and exploration, buy mineral rights and non-operated working interests, and cover working capital.
The company said it runs a three-pronged strategy: direct drilling of operated working interests, acquisition of royalty assets, and acquisition of non-operated working interests for exploration, development, production, and sale of crude oil, natural gas, natural gas liquids, and other byproducts through PhoenixOp, Firebird Services, and Firebird Marketing. Direct drilling is currently focused on 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.
Phoenix said it began operations with a specialized software system it has designed to identify, analyze, underwrite, transact, and manage oil and gas assets, then acquired its first mineral interest and later expanded its team. It said it commenced direct drilling operations and spudded its first wells, with a first owned well later commencing hydrocarbon production, and that it expects those direct drilling operations to be a core component of its strategy going forward.
The notes are a new issue with no established public trading market and will not be listed on any securities exchange or automated quotation system, the prospectus said. Holders may transfer only with the company’s prior written consent, and investors must be prepared to hold to maturity. Crescent is offering the notes on a commercially reasonable efforts basis, with sales intended to close on a weekly basis, and investors must generally satisfy minimum financial suitability standards.