Recently launched private equity firm Pickering Energy Partners is teaming up with exploration company Henry Resources to pursue acquisitions in the prolific Permian basin.

The two firms plan to invest at least $500 million in producing asset packages to be operated by family-run Henry Resources, which has operated in the basin for 50 years. The partners believe their joint venture will be the "buyer of choice" in the basin because of its knowledge of the region, "strong" local relationships and dedicated acquisition capital.

The announcement comes as market-watchers anticipate further consolidation, particularly in the Permian.

"We see a unique opportunity today in the acquisition market for producing oil and gas assets," Pickering Energy Partners chief investment officer Dan Pickering said in a release.

"Partnering with Henry Resources and our investors allows us to opportunistically exploit the liquidity-driven mispricing in the market." Pickering, former president of Tudor Pickering Holt, launched the firm earlier this month.

"Henry has had a front row seat to the Permian basin through various cycles over the past few decades, and today looks like one of the most favorable (produced developed producing) acquisition markets we have ever seen," said Henry Resources president David Bledsoe.

"Henry believes we are well positioned with the PEP joint venture to exploit the current correction and deliver predictable returns to the Henry family and our partners."

Shale

Pickering in $500m Permian JV