Recoil Resources secures major loan deal with Valor Upstream Credit Partners
Recoil Resources, a privately held oil and gas company focused on the Eagle Ford Shale oil window, announced a pivotal financial milestone—securing a senior secured term loan with Valor Upstream Credit Partners, L.P. (“VCP”). This deal positions Recoil Resources for aggressive growth in the booming Eagle Ford oil window. VCP, a dedicated upstream credit fund, is backed by industry giants Riverstone Credit Partners and Vitol, adding significant weight to this strategic financial partnership.
Charles Cusack, CEO of Recoil Resources, emphasized the alignment of long-term goals between the two companies, stating, “We chose VCP as a partner due to its long-term view and alignment with our objective to continue developing our position in the Eagle Ford oil window and generate high returns for our equity owners.”
Valor Upstream Credit Partners was formed recently in June 2023 by Riverstone Credit Partners and Vitol. Daniel Flannery, Managing Director at Riverstone Credit Partners, highlighted the attractive asset base and expertise that Recoil brings to the table. “Recoil has an attractive asset base, an experienced and talented management team, and is a perfect partner for our first transaction at VCP,” said Flannery.
Recoil Resources, founded in 2018, specializes in oil exploration and production in the Eagle Ford Shale play, primarily in South Texas. Since its inception, Recoil has drilled and completed 44 Eagle Ford wells and has expanded its hold to 55,000 acres of mostly HBP’d (Held by Production) land. This extensive acreage, fully operated by Recoil, contains a large inventory of undrilled locations, positioning the company for significant future growth.
This landmark term loan deal with VCP provides Recoil Resources with the capital and strategic partnership needed to accelerate its growth in the Eagle Ford oil window. The agreement further cements Recoil’s status as a key player in the oil and gas sector and provides strong validation for their existing and future projects. With this funding, Recoil aims to generate high returns for its equity owners while fulfilling its strategic objectives in the Eagle Ford Shale.