BlueStone Natural Resources Closes Acquisitions and New Bank Facility

July 10th, 2010 Posted by Uncategorized 0 thoughts on “BlueStone Natural Resources Closes Acquisitions and New Bank Facility”

July 2010 – Tulsa, OK

Tulsa based BlueStone Natural Resources, LLC has closed on 4 significant transactions with another transaction pending, more than doubling its net production and reserves. With this activity, BlueStone has increased its net production to near 20 MMCFD and net proved reserves to over 100 BCFE.

The properties are located in South Texas and are nearly 100% operated. The acquisition activity has increased BlueStone’s operated well count to approximately 500. Financing for the activity was largely provided through a new $175 million credit facility underwritten by Wells Fargo Bank, N.A.

Additionally, BlueStone recently retained Tudor, Pickering and Holt as agent to aid in the divestment of its holdings in the Eagle Ford trend. BlueStone currently holds more than 10,500 net contiguous acres in La Salle and McMullen counties in Texas. To date, 4 wells have been completed on the acreage with a fifth waiting on completion. The average IP for the wells is in excess of 10 MMCFED each. That sales process is expected to conclude during the third quarter.

BlueStone was formed in 2006 utilizing funds from the management team and Natural Gas Partners. Founded in 1988, Natural Gas Partners (NGP) is a $7.2 billion family of investment funds organized to make direct equity investments in private energy enterprises. In addition, two co-investment funds were created with $350 million available to invest in direct oil and gas property interests alongside NGP’s portfolio companies. NGP is part of the investment platform of NGP Energy Capital Management, the premier investment franchise in the energy industry with $9.5 billion in cumulative capital under management.