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Richard Luftig | Managing Partner
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rluftig@castleplacement.com |
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(212) 418-1181
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Overview
Dover Energy is raising $600 million to build a diversified U.S. oil & gas minerals and royalties platform, pairing development-backed mineral acquisitions with targeted investment in currently owned, low-decline Illinois production to deliver stable cash flow and long-term value creation
- Anchored by Illinois production that provides immediate cash flow, operating insight, and a stable platform from which to scale the broader minerals strategy
- Focused on development-backed mineral acquisitions aligned with identified operator drilling activity, allowing Dover to capture reserve revaluation, production growth, and long-term asset appreciation
- Diversified across basins, operators, commodity mix, and development stages, balancing low-decline Illinois production with higher-growth mineral positions to enhance risk-adjusted returns
- Predominantly passive, low-capex model, with mineral and royalty ownership limiting drilling and operating cost exposure while retaining commodity-linked upside
- Executed by an experienced team with deep expertise across minerals, land, geology, operations, and energy investing, supported by Dover’s existing operating platform
Opportunity
- The U.S. minerals and royalties market remains highly fragmented, with ownership dispersed among individuals, families, estates, and small private holders
- Private mineral markets remain less efficient and transparent than public energy markets, creating acquisition opportunities for scaled buyers
- Institutional capital has largely concentrated in public royalty vehicles, leaving significant portions of the private market underpenetrated
- Operator-led drilling and development activity continues to convert undeveloped mineral interests into producing royalty assets
- Long-life reserves and commodity-linked revenues provide durable cash flow and long-term asset appreciation potential
Solution / Strategy
- Target mineral and royalty interests where future operator development is identifiable but may not yet be fully reflected in market valuations
- Focus on development-backed acquisition opportunities rather than competing exclusively for fully developed, cash-flowing mineral assets
- Leverage operating experience, land expertise, and title capabilities to support acquisition sourcing, underwriting, and execution
- Combine mineral acquisitions with existing operated production assets to optimize portfolio cash flow
- Allocate capital across multiple basins, operators, commodity exposures, and development stages to balance current income and long-term value creation
- Deploy capital selectively and in phases, focusing on acquisition quality and valuation discipline
Illinois Oil Production – Anchor Asset
Immediate Cash Flow + Low-Risk Growth Platform
- Producing conventional oil asset with ~135 bpd current production, expected to scale to ~870 bpd through optimization and infill drilling
- Low-decline, long-life reserves (~35+ years) supported by shallow, well-understood reservoirs, and extensive production history
- Capital-efficient development program (re-perforations, waterflood optimization, artificial lift, infill drilling) driving rapid payback and production uplift
- Strong asset base and infrastructure (300+ wells, ~2,800 acres, existing facilities) enabling low-risk execution and cost control
- Attractive downside protection with PV-9 of ~$64MM vs $16MM investment and favorable fiscal regime (~0.1% production tax)
Outstanding Moic & IRR – Minerals
Diversified Minerals Platform
Operator-Aligned Mineral Acquisitions Drive Long-Term Value Creation
- Diversified mineral acquisitions across six core U.S. basins generate mid-case portfolio returns of approximately 5.1x MOIC and 44% IRR
- Development-backed acquisitions positioned ahead of operator drilling create opportunities for reserve revaluation, production growth, and long-term asset appreciation
- Balanced exposure across oil, natural gas, multiple operators, and development stages enhances portfolio resilience and risk-adjusted returns
Outstanding Moic & IRR – Production
Illinois Production Platform
Low-Risk Production Investments Deliver Exceptional Returns
- Diversified production enhancement initiatives generate mid-case portfolio returns of approximately 10.6x MOIC and 101% IRR
- Low-cost redevelopment projects increase production, reserves, and asset value while generating immediate cash flow
- Established Illinois Basin operations provide long-life, low-decline production with limited technical and execution risk
Management
Mark D. Wilson
Founder, Chairman, President & CEO
37+ years across the oil & gas value chain, including executive leadership, energy investing, corporate development, and operations. Approximately $13 billion of transaction experience. Former CEO of Northstar Energy and Coronado Resources. Former senior executive with The Williams Companies and Koch Industries. MBA, Harvard Business School, B.S. Chemical Engineering, Oklahoma State University.
Nicolas de Grivel
Executive Vice President & Chief Commercial Officer
25+ years in structured finance, acquisitions, and global energy markets. Former senior executive at Glencore and Rothschild & Co. MBA, University of Chicago Booth.
Roberto Bencini
Senior Vice President – Geoscience
48+ years in subsurface evaluation, reserve assessment, basin analysis, and development risk evaluation.
Mark Caffey
Vice President – Minerals West Region
40+ years in mineral acquisitions, title evaluation, leasing, and land management. Founder of multiple energy platforms, including ADEXCO, sold for approximately $305 million.
Roy Snively
Vice President – Operations, Dover Illinois I
40+ years of upstream operating experience. Responsible for Dover Illinois operations since 2012 with expertise in production optimization and field operations.
John Hopkins, CPA
Vice President – Accounting & Controller
20+ years in energy accounting, financial reporting, financial controls, and upstream operations support.
Specific Risks
Financial models and other supporting information regarding historical data, hypothetical target returns, contextual analysis, and other pertinent matters will be made available to prospective investors upon request. There is no guarantee of success, and there is a potential for loss of your investment.
- Liquidity risk – Delayed or limited access to capital could slow the pace of optimization and development activity
- Commodity price risk – Revenue exposure to oil and gas price volatility may impact cash flow
- Operator development risk – Dependence on third-party operators for drilling execution
- Regulatory risk – Changes in environmental or oil and gas regulation could affect timelines
- Capital risk – Private securities are speculative, illiquid, and carry a high degree of risk – including loss of the entire investment
Risk Mitigation
- Liquidity risk – Phased deployment, multi-basin pipeline, strict evaluation discipline
- Commodity price risk – No operating cost exposure in the minerals portfolio; diversified commodity and basin mix
- Operator development risk – Focus on top-tier operators with substantial drilling programs; basin diversification
- Regulatory risk – Comprehensive title diligence, geographic diversification, long-duration cash flow profile
- Capital risk – Comprehensive title diligence, geographic diversification, long-duration cash flow profile
