Midland, Tex., April 15, 2013 \u2014 CrownRock, L.P., an oil and gas producing joint venture of CrownQuest Operating and Lime Rock Partners, today announces the successful completion of an offering of senior unsecured notes.\u00a0 The $400 million aggregate principal amount of 7.125% senior unsecured notes are due in 2021.\u00a0 The proceeds of the offering will be used in part to further advance CrownRock\u2019s activities in the Wolfberry Play of West Texas.\u00a0 CrownRock, through CrownQuest, is one of the most active operators in the play.\u00a0 It has drilled or participated in 400 gross vertical wells to date and expects to drill an additional 250 gross wells this year with a 12-rig drilling program.<\/p>\n
The notes were issued privately to qualified institutional buyers in the United States pursuant to Rule 144A under the Securites Act of 1933, as amended (the \u201cSecurities Act\u201d). The offering was led by Credit Suisse Securities (USA) LLC.\u00a0 The notes were issued at a price equal to 100% of their face value.\u00a0 The notes have not been, and will not be, registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and the rules promulgated thereunder.<\/p>\n
Proceeds from the notes are being used for three purposes: to fund CrownRock\u2019s ongoing drilling program and other general purposes; to fund pending and future acquisitions of additional acreage opportunities; and to repurchase $150 million of existing notes and pay other outstanding debt.\u00a0 Nearly 75 institutional investors subscribed to the offering.<\/p>\n
Tim Dunn, CEO of CrownQuest, noted, \u201cThe completion of this offering marks the third important milestone for CrownRock over the last several months.\u00a0 We have recently exceeded $1 billion in proved reserves, according to our latest reserve report.\u00a0 We have also paid out to our investors all the initial equity capital, with significant current and future value still embedded in the joint venture.\u00a0 These three milestones are a testament to the hard work of the entire CrownQuest team and the strength of our ongoing partnership with Lime Rock.\u201d<\/p>\n
Bobby Floyd, President of CrownQuest, added, \u201cWe would like to thank both Credit Suisse for their excellent management of the offering and the investors who participated in it.\u00a0 With the completed offering, we have moved from a very prudent and solid capital structure to an even stronger one.\u00a0 This will enable us to continue with the steady, aggressive drilling on our existing acreage position and seize other opportunities that come to us.\u201d<\/p>\n
For more information on CrownQuest Operating, please visit www.crownquest.com.<\/p>\n
For more information on Lime Rock Partners, please visit www.lrpartners.com.<\/p>\n
Qualified institutional buyers may obtain additional information at www.crownrocklp.com.<\/p>\n","protected":false},"excerpt":{"rendered":"
Midland, Tex., April 15, 2013 \u2014 CrownRock, L.P., an oil and gas producing joint venture of CrownQuest Operating and Lime Rock Partners, today announces the successful completion of an offering of senior unsecured notes.\u00a0 The $400 million aggregate principal amount of 7.125% senior unsecured notes are due in 2021.\u00a0 The proceeds of the offering will […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n