PetroCap was formed by independent oilmen in 1992. Dick Rinehart, John Sears and Doug Evans created an energy merchant bank, using their own capital to control transactions while arranging permanent financing. Our first institutional fund was formed in 2009 and, while the team has since expanded, we maintain a strong technical and operational focus with in-house engineering, geology, land and accounting. Our team, and our complete decision making process, operates form our office in Dallas, Texas.
We use this experience to invest as an active, constructive working interest participant, governed by a JOA. Generally, our operating partner will own the remaining interest and earn additional upside through a back-in once our capital is returned and rates of return are achieved. The back-in interest is covered in a simple side letter.
When you think about it, the working interest joint venture is our industry’s oldest and most accepted form of private equity. It has worked well for the last 100 years. The documents are simple, familiar and are measure in pages, not pounds.
We invest as your partner, not your boss. You are free to work on other projects and with other partners. Our investment target is $20 – 70 million in any one project; existing projects and/or acquisitions. We look at anything in the lower 48, onshore; oil or gas.