Lime Rock Partners Announces Two European Investments7/11/2006
ABERDEEN, July 11, 2006 — Lime Rock Partners, a private equity firm focused on the energy sector, today announces two new significant investments in Europe. On June 13, 2006, the firm agreed to invest up to $50 million in Bridge Energy AS, a Billingstad, Norway-based exploration and production company focused on the Norwegian Continental Shelf (“NCS”). On July 11, 2006, the firm completed its investment in a Ukrainian manufacturer of land drilling rigs and rig components. The manufacturer is now a core operation of the newly-formed, Europe-based IDM Group, which together with Houston-based IDM Equipment Co., Inc. provides capital equipment to the global oil and gas industry. Lime Rock Partners invested in IDM Equipment Co. in March 2006.
Lawrence Ross, an Aberdeen-based Managing Director of Lime Rock Partners, noted, “Bridge Energy is our fifth growth capital investment in Norway, and the IDM facility is our first growth capital investment in Eastern Europe. Together, the investments speak to Lime Rock’s belief in the long-term growth of the European energy business and to the attractiveness of assets in emerging international areas. Our team will work to add value to the strong management of both operations to allow their companies to achieve their high growth potential.”
Bridge Energy will focus on the exploration and development of mature areas of the Norwegian Continental Shelf. It has applied for prequalification as a license holder in Norway in order to participate in the APA 2006 licensing round. Lime Rock Partners’ growth capital will allow the Bridge Energy team, led by Einar Bandlien, Svein Johansen, Alfred Kjemperud, and Olve Torvanger, to pursue multiple opportunities on the NCS and leverage its significant entrepreneurial and NCS experience.
The IDM Group’s recently acquired Ukrainian land rig manufacturing facility is one of the longest standing drilling rig manufacturers in the world. Its operations were reconstituted in 2005 under the leadership of the Nadra Group, the largest oil service company in Ukraine. Led by Andriy Zagorodnyuk and Michael Flannery, the facility currently produces a range of products from small mobile workover rigs to 2000 horsepower drilling rigs for markets in Central Asia, North Africa, Eastern Europe, and the Middle East. The team led by Mr. Zagorodnyuk and Dr. Flannery will play an active role in the integration of the facility into the IDM Group and the continued management and growth of IDM’s activities.
Lime Rock Partners believes that its investment of growth capital will allow IDM Group to unlock the spare capacity of the Ukrainian manufacturing facility and its highly-skilled workforce. IDM has already begun to integrate engineering, design, and marketing aspects of its U.S. and European operations. IDM expects its Ukrainian facility to begin manufacturing drilling rigs based on IDM Equipment Co.’s leading-edge Quicksilver Drilling Systems and other proprietary designs.
Tom Bates, a Houston-based Managing Director of Lime Rock Partners, stated, “Lime Rock Partners has been very impressed by the energy and capabilities of the Ukrainian plant’s facilities, management, and employees. We believe that, going forward, IDM will combine the leading-edge expertise of IDM Equipment Co. and the manufacturing muscle of the new IDM Group facility. Lime Rock continues to look throughout the global oil and gas capital equipment sector to add other operations to this strong base.”
Established in 1998, Lime Rock manages $1.3 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. Lime Rock Partners is a creative, value-adding, and long-term investor of growth capital in global energy companies in the exploration and production, energy service, and oil service technology sectors. From locations in Aberdeen, Scotland; Calgary, Alberta; 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.
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