Alaskan Oil and Gas Deal ​$35 Million Equity Raise

Industry

Energy

Company Type

Oil Gas

Location

US

Size

$35  Million

Investment Type

Equity
For important risk and disclaimer information, Click Here.

Helping Great Companies Grow

Overview

  • Finnex, LLC, a subsidiary of Thyssen Petroleum USA that was formed to develop the Mustang field in Alaska, is seeking up to $35 million of equity to restart activity and fund reactivated development and drilling activities.
  • Negotiated the principal terms to take over the former assets of Brooks Range. Petroleum Corp from the Alaska Industrial Development and Exportation Authority (AIDEA).
  • Finnex has negotiated a term sheet for a loan of up to $35 million to help kick off the redevelopment of the field.
  • The Mustang field is on the western edge of the Kuparuk River oilfield operated by ConocoPhillips.
  • Oil production can be restarted within six months.
  • Strong professional management team with unique experience in the oil and gas industry and the Alaskan market.
Screen Shot 2021-05-18 at 1.07.19 PM
Helping Great Companies Grow

Opportunity

  • The Mustang Field project is in the heartland of the Alaska North Slope production area.  It is adjacent to the super-giant Kuparuk River oil field operated by ConocoPhillips and the Oilsearch/Repsol Nanushuk discoveries, which have recently announced development plan approvals.
  • The field benefits from a fixed pad enabling year-round operations and a connection to the Alpine Pipeline System, allowing ready access to market via the Alpine, Kuparuk and TAPS pipeline systems.  The crude oil is marketed as ANS.
  • At around 33mmbbl recoverable the field is too small by Alaska standards to attract the interest of the majors, but large enough for a small, focused operator with local experience.
  • Finnex’s access to the opportunity arises from a participating interest which it sold in 2019 and from the relationship with AIDEA (Alaska Industrial Development and Export Authority).  AIDEA foreclosed on the previous owners and is anxious to put the asset back on production.  
  • Finnex has access to all the previous operating staff and facilities and has worked with all the creditors in developing a recovery plan.  Finnex is also in negotiation with an operator with proven Alaska drilling experience, which would further enhance its ability to maximize recovery and minimize drilling risk.
Helping Great Companies Grow

Solution/Strategy

  • Opportunity to acquire undervalued asset in distress.
  • The Mustang project has proven oil production.
  • Finnex has agreements with several development companies; Ennovate for EPCM design, Conam for construction, Fairweather for drilling management, and Nabors for rig contract supply.
  • 33 MM bbls (2P) reserves oil field with ready access to market via the Alpine and Kuparuk pipelines into the TAPS pipeline system.
  • Finnex is intimately familiar with the asset and the market, and believes that production can grow from 3,000 to 12,000 bopd within three years.
  • Infrastructure in place – road and pad installed and two initial production wells ready to connect to support start up; oil export connection to Alpine pipeline is in place.
  • Ability to work year-round with permanent pad and road access.
  • Early production facilities tested in Q4 2019.
Helping Great Companies Grow

Management

Majid Jourabchi

CEO

 

  • Accomplished executive with extensive experience in finance and management. Started his career in New York City and later moved to Silicon Valley, New Mexico and Geneva Switzerland. Since joining Thyssen Petroleum, has built a successful company producing 3,800+ BOE, with a strong balance sheet and a dedicated core team of talented individuals.  ​
  • Before joining Thyssen Petroleum in 2012, was on the Board of Yates Petroleum, which at that time was the largest privately owned Oil and Gas company in the Permian basin.  During tenure on the Board the company was sold to EOG for $2.8B.  ​
  • Prior to Thyssen Petroleum:​
    • Managing Partner of Drilling Telemetry Solution – licensed and developed technology with Los Alamos National Laboratory and Sandia National Laboratory.  Currently this technology is used in smart drilling pipes utilized by industry through Schlumberger and Baker Hughes.​
    • Participated in seven independent oil and gas wells in New Mexico and Wyoming.​
    • Served as a managing partner of Synergy Asset Management, a hedge fund.​

Harry Bockmeulen

Chief Operating Officer​

  • Proven oil finder and prospect generator with a strong and diverse geophysical and geological background. Over 44 years industry experience.  ​
  • Instrumental in the discovery and exploitation of nearly 1 billion barrels of oil equivalent, including the Alpine Oil Field in Alaska, numerous oil and gas fields in the Sindh Province of Pakistan and several oil fields on the Bayou Bouillon salt dome in Louisiana. Currently Head of Exploration for Thyssen Petroleum USA.  ​
  • Prior to Thyssen Petroleum:​
    • Chief Geophysicist for Falcon Oil and Gas – responsible for coordination of geophysical matters between the Falcon corporate office in Denver and the TXM office in Budapest, Hungary.​
    • Advisor for United Energy Group in a successful $775 million acquisition of BP Pakistan assets.​
    • Consultant for various domestic and international exploration and production companies.​
    • Vice President, Exploration for the Orient Petroleum Group – instrumental in developing and managing a worldwide portfolio of exploration and development projects, including a highly successful exploration and development program.​
    • Worked for Union Texas Petroleum – instrumental in the discovery of the 500+ million barrel Alpine Field on the North Slope of Alaska.​
    • Held technical positions with Cities Service Company, BP and Seagull Energy.​
Helping Great Companies Grow
Learn More About This Transaction

CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

Sending

Log in with your credentials

Forgot your details?