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 Blue Tip Energy acquires direct working interest in on-shore oil and natural gas assets in the United States. We target underperforming producing assets that are not being fully optimized and with meaningful development potential. Targeted investment sizes range up to $25 million. We typically deploy additional "follow-on" capital of up to $20 million to optimize and develop the field. We can acquire and develop larger assets if the opportunity is consistent with our overall investment strategy, but, over the last 20 years, we have found that assets in our target range typically trade in very inefficient markets and often realize considerable value upside if given strong operational attention and appropriate capital allocation.
As with any investment strategy understanding and managing risk is critical to successful results. The Fund's in-house operating expertise allows us to quickly develop a deep understanding of the risks and upside of potential new investments at the reserve and operating level rather than solely at the financial or deal structure levels. The Fund operates each portfolio asset in-house whenever possible, allowing our internal operating team to bring considerable experience and skill to optimize current production, quantify upside, determine the scope and pace of development, and the timing of exit. These unique investment strategy characteristics combine to help us achieve targeted portfolio level returns with maximum control of the asset, its risks, and capital outlays. |
