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California Resources, Macquarie to invest up to $300m in oil, gas

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Staff Writer | April 19, 2017
California Resources Corporation and Macquarie Infrastructure and Real Assets (MIRA) have formed a strategic joint venture.
California Resources
Oil exploration   MIRA will fund 100 percent
MIRA has committed to fund $160 million for the development of oil and gas properties in California, with a focus on development opportunities in the San Joaquin Basin.

Subject to the discretion of the parties, MIRA may increase its total investment to up to $300 million.

The initial commitment, relating to multiple development opportunities in CRC’s Kern Front, Mt. Poso, Pleito Ranch and Wheeler Ridge fields, is intended to be invested over two years in accordance with an already mutually approved development plan.

MIRA will fund 100 percent of the development wells in which it will earn a 90 percent working interest. CRC’s working interest will revert from 10 to 75 percent upon MIRA achieving an agreed return.