The original Pablo Energy, Inc., ("Pablo Energy Inc.") was formed in the state of Texas in March of 1997 as a subsidiary of Cactus Feeders, Inc. It started out drilling for oil and gas on small parcels in the Texas Panhandle. In 2003, Pablo Energy, Inc. acquired 6,000 gross acres in Hemphill County, Texas, where it drilled 25 gas wells in the Granite Wash formation. In February of 2006, Pablo Energy, Inc., was sold to Dominion Exploration for $92 million.

In January of 2006, Pablo Energy II, LLC, ("Pablo Energy II") was formed in the state of Texas. It acquired 21,000 acres from Devon Energy in 2006 and expanded that position to 31,000 acres, which it subsequently transferred to Southridge Energy, LLC. Pablo Energy II drilled 57 horizontal Woodford wells and also participated in 55 non-operated horizontal Woodford wells prior to forming a joint venture with Jones Energy Holdings at an implied value of $295 million. 

On behalf of Pablo Pawnee, LLC, and Black Bear Creek Energy, LLC, Pablo Energy II acquired a 70,000 acre Mississippian position in 2009. This acreage was located in Pawnee and Noble counties in Oklahoma, where it drilled 7 horizontal wells, prior to selling the position to Highmount Exploration for $106 million in 2011.

In January of 2012, Pablo Energy II was purchased by Verdugo Energy, LLC, which together with its subsidiaries, purchased an interest in approximately 40,000 acres in Baylor County, Texas. Verdugo Energy, LLC, is now undertaking drilling programs in Oklahoma and Texas.