Coronado Resources Secures $80.8 Million Equity Commitment
10/11/2005TULSA, Okla., October 11, 2005 — Coronado Resources, LLC (“Coronado”) today announced that it has received equity funding commitments of $80.8 million from an investment group led by Greenhill Capital Partners, LLC (“Greenhill Capital”) and Lime Rock Partners (“Lime Rock”). Coronado is a private oil and gas company based in Tulsa focused on the development of natural gas resources in unconventional reservoirs, primarily coal bed methane, tight gas sands, and shales in the mid-continent and eastern United States.
Coronado was founded in 2004 by Mark Wilson and John Coates. Mr. Wilson, President and CEO of Coronado, was previously Senior Vice President, Corporate Development and Planning of The Williams Companies where he oversaw $10 billion in acquisitions and divestitures and played a key role in developing and executing the strategy that permitted Williams to emerge from its liquidity crisis in 2002. Mr. Coates, Executive Vice President of Coronado, was previously Executive Vice President and co-founder of Patrick Energy Group where he developed several successful unconventional gas plays. Prior to his tenure at Patrick, he served as Director, Eastern Region at MCNIC Oil and Gas, where he was responsible for a 900 billion cubic foot unconventional gas portfolio. Mr. Coates has been an unconventional reservoir specialist for 20 years.
At the closing, Mr. Wilson, said, “All the success John and I have enjoyed to date has prepared us for this day. We couldn’t be more pleased to have secured the backing of such experienced and supportive financial sponsors. Their capital and the expertise of our outstanding team will allow us to pursue new prospects and dramatically accelerate development on the projects we have identified to date.”
Jonathan Farber, Managing Director of Lime Rock Partners, added, “Lime Rock has been extensively involved in unconventional resource investing since its first investment in 1998. We continue to believe that the development of these resources is necessary to meet the energy demands of the United States. Lime Rock is excited to be backing the Coronado team as it puts its considerable experience to work to create value for our investors.”
Greenhill Capital Managing Director V. Frank Pottow noted, “We have already successfully realized two unconventional reservoir investments this year, and the area continues to be an important investment theme for our funds. Coronado’s focus on unconventional gas resource plays, Mark’s larger transaction and business management expertise, and John’s considerable experience in the Mid-Continent and Eastern United States make this a perfect complement to our existing energy portfolio.”
Lime Rock is a private equity firm with over $1.3 billion under management dedicated to investing in energy companies with high growth potential. From offices in four major energy centers in North America and Western Europe, Lime Rock Partners targets growth equity investments in conventional oil service, oil service technology, and exploration and production and processing companies. For more information, please visit www.lrpartners.com.
Greenhill Capital Partners, LLC is an affiliate of Greenhill & Co., Inc. (NYSE: GHL), an independent global investment banking firm. Greenhill Capital manages two private equity funds which aggregate $1.3 billion of committed capital. Since 2002, Greenhill Capital has committed $240 million to 14 different energy companies. Coronado is Greenhill Capital’s fifth portfolio company focused primarily on unconventional reservoirs.
Affiliates of COSCO Capital Management LLC (COSCO) acted as exclusive agent and co-investor in the financing. COSCO has raised more than $400 million for energy company clients in 2005, alone, and since 2000, has co-invested in twenty energy companies for which it has raised equity.
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