Lime Rock Partners Announces Three Investments in North America10/22/2008
WESTPORT, Conn., October 22, 2008 — Lime Rock Partners, a private equity firm focused on the energy sector, today announces three new investments in the North American oil services and exploration and production sectors. On September 1, 2008, Lime Rock Partners committed to invest $70.0 million in Braden Exploration, a Fort Worth, Texas-based oil and gas producing company focused on the Barnett Shale. On September 16, 2008, Lime Rock Partners and Thomson Street Capital Partners completed the $99.4 million management buyout of Hibbing, Minnesota-based Irathane Systems (formerly Industrial Rubber Products, Inc.), a leading designer, producer, and applicator of protective coatings to pipeline and industrial markets. On September 25, 2008, Lime Rock Partners closed a $120.0 million commitment to RMP Energy as part of a $240.0 million private financing. RMP is a Calgary, Alberta-based startup oil and gas producing company focused on the Western Canadian Sedimentary Basin. These three investments represent the third, fourth, and fifth investment that the Lime Rock Partners team has made in North America since the beginning of 2008.
Jonathan Farber, Managing Director of Lime Rock Partners, noted, “Braden, Irathane Systems, and RMP are three very different portfolio companies typifying the two best investment strategies we see in the North American energy sector right now. Braden and Irathane both have competitive advantages in capitalizing on opportunities in unconventional resources: Braden is pursuing drilling opportunities in the highly technical Barnett Shale, and Irathane is a leading-edge service provider in the Canadian oil sands. RMP is pursuing a value strategy, recognizing the exciting opportunities for long term-focused operators in acquiring and exploiting assets in distressed areas of the business.”
Founded in 2007, Braden Exploration is an independent oil and gas producing company led by Bruce Braden, Chris Veeder, Greg Smith, Tony Gardner and other former senior executives of Stroud Energy. Braden Exploration is pursuing technology-driven oil and gas exploration opportunities within the Barnett Shale region of North Texas.
Irathane Systems is a leading designer, producer, and applicator of elastomeric protective coatings for pipelines and other equipment used in demanding industrial applications. Founded in 1957, it serves U.S. and international customers in the energy, mining, aggregates, and other end markets. Since the launch in late 2006 of the company’s patent-pending IRACORE™ Pipe System, IRACORE has become the technology-leading pipe system for the fast growing oil sands industry of Canada and is beginning to penetrate other end markets.
Formed in early 2008, RMP Energy is a startup independent oil and gas company focused on the acquisition and development of a portfolio of early-stage conventional oil and gas assets in the Western Canadian Sedimentary Basin. The team is lead by Craig Stewart, John Ferguson, Ross MacDonald, Brent DesBrisay, and Bruce McFarlane, a senior executive team that formerly led Poco Petroleums, Meota Resources, and Rider Resources, three publicly traded independent Canadian oil and gas producing companies.
Townes Pressler, Managing Director of Lime Rock Partners, said, “We are fortunate to be able to form partnerships with three tremendous groups of entrepreneurs in RMP, Braden, and Irathane. These executives have not only shown themselves capable of growing companies through cycles but also of being quick to develop and apply new technology and quick to seize new opportunities.” J McLane, Director of Lime Rock Partners, added, “As with our recently announced joint venture with Livingstone Energy Management, our commitment to RMP is evidence of our belief that the Canadian market remains a great place to invest, to not only take advantage of long-term growth in the oil sands but also to find acquisition opportunities for great operators in highly volatile markets.”
First Energy acted as an adviser for RMP Energy. Stifel, Nicolaus & Co. acted as an adviser to Irathane Systems.
For more information on Braden Exploration, see www.bradenexpl.com.
For more information in Irathane Systems, see www.irproducts.com.
Established in 1998, Lime Rock manages $3.5 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. With $3.0 billion under management, Lime Rock Partners is a creative, value-adding, and long-term investor of growth capital in exploration and production, energy service, and oil service technology companies worldwide. From locations in Aberdeen, Scotland; Houston, Texas; and Westport, Connecticut, the Lime Rock Partners team brings together a global network of relationships, deep interdisciplinary expertise in finance and energy company operations, and a strong track record of value creation. For more information, please visit www.lrpartners.com.
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