Fayetteville’s White River Energy launches investment firm

by Jeff Della Rosa ([email protected]) 845 views 

Fayetteville-based oil and gas company White River Energy Corp. has established a subsidiary offering tax-advantaged products, according to a Thursday (Oct. 5) news release. The new firm’s first investor product is a $50 million intangible drilling cost (IDC) deduction limited partnership.

White River Private Capital Management is the new wholly-owned subsidiary of White River Energy and has a hybrid public/private business model. It will offer IDC funds, 1031 exchange funds and insurance-designated funds in the oil and gas industry through a limited partnership model. White River Energy Partners I LP is the name of the $50 million IDC limited partnership.

“This venture signifies not only just an avenue for growth for our company but a commitment to generating value in a non-dilutive manner for our common stockholders while providing the opportunity for tax optimization and investment returns for our private investor partners,” said Randy May, chairman and CEO of White River Energy. “Our drive has always been to innovate and adapt, and this new chapter will allow us to further solidify our promise to the market.”

Jay Puchir, chief financial officer of White River Energy and fund manager of White River Energy Partners I LP, said, “We are not aware of any other public oil and gas exploration and production company that has deployed this unique public/private business model with its own structured financial product development and distribution team.” He noted the new firm’s logo without the pump jack provides “the flexibility to structure product offerings in other sectors at a future date.”

The news release shows the new firm will be led by a “seasoned executive team with a proven track record which will be announced via a separate release at a future date.”

According to an Aug. 14 filing with the U.S. Securities and Exchange Commission, White River Energy, formerly Fortium Holdings Corp., reported a net loss of $15.16 million, or a loss of $1.49 per share, in the quarter ending June 30, compared to a net loss of $1.98 million in the same period in 2022. Revenue rose by 68.2% to $195,937 from $116,461. The company’s fiscal year ends March 31.

In July 2022, Fortium acquired White River Holdings Corp. from BitNile Metaverse Inc., formerly Ecoark Holdings Inc., the filing shows. In the acquisition, which was treated as a reverse merger, Ecoark provided the company with $3 million. The oil and gas operations of White River Holdings comprise exploration, production and drilling on more than 30,000 acres of active mineral leases in Louisiana and Mississippi. In September 2022, Fortium was renamed White River Energy and sold two subsidiaries to focus on the oil and gas business.

According to federal filings, White River Energy owns about 34,000 acres of active mineral leases in Louisiana and Mississippi. As of Sept. 4, the company had 11 productive wells in operation, 42 full-time employees and 17 independent contractors. The independent contractors perform oilfield services. The company leases a small Fayetteville office for its headquarters. Company executives and most of the employees and consultants work remotely or in the field.

Shares of White River Energy (OTCQB: WTRV) closed Thursday at $1.44, up 9 cents or 6.67%. In the past 52 weeks, the stock has ranged between 40 cents and $2.50.