Energy investment management firm Pickering Energy Partners (PEP) has formed a joint venture (JV) with oil and gas operator Henry Resources.

The PEP-Henry JV will execute acquisitions of producing oil and gas properties across the Permian Basin, where Henry has operated for nearly 50 years.

Pickering Energy Partners chief investment officer Dan Pickering said: “We see a unique opportunity today in the acquisition market for producing oil and gas assets. Partnering with Henry Resources and our investors allows us to opportunistically exploit the liquidity-driven mispricing in the market.

“The Henry team has been long-time friends and partners of ours, and we are honoured to be working with a group with a respected reputation, a half-century of experience in the Permian, and a distinguished track record of success.”

Under the terms of the JV, Henry and PEP will target to invest nearly $500m in producing asset packages to be operated by the former team.

The strategic partnership includes a significant current yield component and a hedging programme to get protection from volatility in crude oil markets.

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Henry Resources president David Bledsoe said: “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 favourable PDP acquisition markets we have ever seen.

“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.”

The JV is of the opinion that it would be the ‘buyer of choice’ due to its knowledge on the Permian Basin.