FAIR TO ALL
HYBRID-RISK ENERGY FUND
ABOUT US
LRH Energy Capital Hybrid-Risk Funds are a new family of investment funds originated to take advantage of state-of-the-art, physics-based analytics that accurately characterize the risk of oil and gas projects. Our patented in-house technical capabilities differentiate us from other capital providers and provide our investors and clients a superior vision into the future. We offer both onshore USA and offshore investors access to secure and profitable investments in the energy sector.
UPSTREAM FOCUS
As upstream energy-only investors, our core objective is to assist clients in building strong, growth-oriented companies. Founded by entrepreneurs, LRH values the power of new ideas to capitalize on timely acquisitions and upstream development programs.
We believe that motivated management teams operating in their own interest are the secret to success at the drill bit. We are committed to working on projects where LRH's interests are completely aligned with those of management.
TECHNICAL EXPERTISE
LRH uses the world’s most advanced physio-statistical algorithm to forecast production from existing PDP and PUD wells. The combined result of these forecasts and LRH Energy’s K-Hybrid Risk Model™ is an in-depth statistical analysis of a project, its production history, future value, and type curves, as well as validation of the internal consistency of the database provided.
LRH bases its funding decisions entirely on this proprietary scientific analysis and the resultant P-90 value of the total 1P or proved production of a project. We do not rely on third-party reserve reports. We accurately value every loan in a short period of time and identify areas to investigate further, including the geology, operating team and specific development strategies.
Closing may occur in as little as 60 days.
STRUCTURAL HIGHLIGHTS
LRH provides a fair and affordable alternative for Operators to finance acquisitions, drill plans, and bolt-on projects. Unlike private equity, LRH takes no ownership position in the borrower’s company. Our structure is built around an amortizing, fixed-rate term loan. Additionally, because we take a Net Profits Interest (“NPI”) instead of a large royalty interest through the tenor of loans deployed, assets aren’t over-burdened for future development. (View Project Capital Stack.)
Based on the strength of LRH’s robust investment process, technical capability and hybrid-risk fund features, we are able to offer favorable financing terms at attractive levels with competitive interest rates.