CrownQuest and Lime Rock Partners Announce Investment2/26/2007
Feb. 26, 2007 Midland, Tex. — Midland-based independent oil and gas producer CrownQuest Operating, LLC announced today the formation of a investment partnership, CrownRock LP, with Lime Rock Partners, a Westport, Connecticut-based private equity firm focused on the energy industry. CrownQuest is contributing properties and acreage to the joint-venture and Lime Rock Partners has made a $75 million equity commitment of growth capital, with the option to increase that commitment to $100 million. CrownQuest will use the equity investment to finance an expanded drilling program in the Permian Basin, San Juan Basin, and certain areas in the Rocky Mountain region.
Tim Dunn, CEO of CrownQuest, stated, “We are very pleased to have a financial partner with the capabilities, experience, and financing capacity of Lime Rock Partners. We have known the principals for many years, and we are excited to have the opportunity to work together in this venture.” CrownQuest sold much of their production to Whiting in 2004, and the team has since focused on rebuilding their portfolio of opportunities. Mr. Dunn added, “Recently it has been a highly profitable period to own producing properties, but with the dramatic increase in acquisition costs and the substantial tightening of oil field services availability, it has been a challenging time to pursue new opportunities. By substantially increasing our access to equity capital, we are adapting to this challenging environment in order to be able to aggressively pursue the opportunities we have identified.”
Jonathan Farber, Managing Director of Lime Rock Partners, said, “For years, we have sought a way to work with Tim, Bobby Floyd, and the rest of the CrownQuest team. We think that they are one of the most experienced, savvy, and technically well-rounded teams operating today. We also think it’s the perfect team to seize opportunities still available in the Permian and surrounding basins for niche oil and gas producers.”
CrownQuest operates approximately 600 wells from its headquarters in Midland, Texas.
Established in 1998, Lime Rock manages $2.1 billion of private capital for investment in the energy industry through Lime Rock Partners, investors of growth capital in energy companies worldwide, and Lime Rock Resources, acquirers and operators of oil and gas properties in the United States.
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