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BlueStone Natural Resources II Announces Closing of Quicksilver Acquisition

April 7th, 2016 Posted by Uncategorized 0 thoughts on “BlueStone Natural Resources II Announces Closing of Quicksilver Acquisition”

BlueStone Natural Resources II and Crestwood Equity Partners Enter Ten Year Gathering and Processing Agreement

Tulsa, OK, April 7, 2016 – BlueStone Natural Resources II, LLC (“BlueStone”) announced that it has closed on the purchase of Quicksilver Resources Inc.’s (“Quicksilver”) US oil and gas assets. These assets consist of 1,017 producing wells in the Barnett Shale play, with additional holdings in West Texas. In addition, BlueStone has entered into 10 year agreements with Crestwood Equity Partners LP (NYSE:CEQP) (“Crestwood”) to gather the gas from the Alliance, Lake Arlington and Cowtown systems, which comprise the majority of the Barnett Shale assets.

This acquisition will establish BlueStone as one of the premier producers in the Barnett Shale, with ownership of more than 1,200 wells located throughout the play. When coupled with its South Texas holdings, BlueStone will have net production of more than 180 MMCFE (million cubic feet equivalent) per day. BlueStone employs more than 50 people in its Tulsa Oklahoma headquarters, and an additional 100 field employees located in offices throughout Texas.

BlueStone partnered with Natural Gas Partners to purchase the assets, leveraging its 13 year relationship with the Irving, Texas based equity sponsor.

“BlueStone is excited about this tremendous growth opportunity”, said John Redmond, BlueStone’s President and Chief Executive Officer. “These assets are the perfect fit for our team. We are excited about moving forward with our existing team, our new team members, and new partners to grow this asset base over the coming years.”

Additionally, BlueStone is pleased to announce the promotion of Doug Redmond to Chief Operating Officer of BlueStone. Doug has more than 24 years’ experience in the oil and gas industry, and had been functioning as BlueStone’s Vice President of Engineering. Doug will continue in his role as the Vice President of Engineering, as he assumes his additional role as Chief Operating Officer.

Tulsa’s BlueStone Natural Resources Approved by Federal Bankruptcy Court as the Winning Bidder for Quicksilver Resources’ U.S. Oil & Gas Assets

January 29th, 2016 Posted by Uncategorized 0 thoughts on “Tulsa’s BlueStone Natural Resources Approved by Federal Bankruptcy Court as the Winning Bidder for Quicksilver Resources’ U.S. Oil & Gas Assets”

January 29, 2016 – Tulsa, OK

The United States Bankruptcy Court for the District of Delaware approved Tulsa-based BlueStone Natural Resources II, LLC (“BlueStone II”) as the buyer of the domestic oil and gas assets of Texas-based Quicksilver Resources Inc. Wednesday. The $245 million acquisition of Quicksilver’s U.S. oil and gas assets makes this the largest purchase for BlueStone to date.

Quicksilver Resources Inc., an upstream exploration and production company based in Fort Worth, Tex., petitioned for bankruptcy (Chapter 11) in March of 2015. The auction of its assets began on Jan. 20. BlueStone was announced as the highest and best bid on Jan. 21. With Wednesday’s court approval, the transaction is expected to close in the coming weeks.

The acquisition of Quicksilver assets is in line with BlueStone’s growth strategy and geographically complements existing holdings in the Barnett Shale and South Texas. The Quicksilver assets include over 1,000 operating wells in the Barnett Shale play.

“We saw the Quicksilver asset purchase as an ideal way to advance our growth strategy in Texas,” said John Redmond, BlueStone II president and CEO. “These assets are a great fit for us – high quality wells in a clearly defined resource play. We are very pleased to be the successful bidder and grateful for the support of our equity sponsor, Natural Gas Partners. I am so proud of our BlueStone team.”

Specializing in the purchase and development of oil and gas properties, the BlueStone franchise was formed in 2006 and has grown to become one of the most acquisition-focused companies in Texas. Concentrating on capital deployment in the Lone Star State, the BlueStone team has closed more than 100 transactions in its 10-year history.

The BlueStone team is headquartered in Tulsa, Okla. Prior to the Quicksilver acquisition, BlueStone II employed more than 60 people in its Tulsa headquarters, along with numerous field offices in Texas, and owned more than 800 wells in the South Texas and Barnett Shale plays.

BlueStone Natural Resources Sells Subsidiary

February 10th, 2012 Posted by Uncategorized 0 thoughts on “BlueStone Natural Resources Sells Subsidiary”

February 2012 – Tulsa, OK

Tulsa based BlueStone Natural Resources, LLC recently closed on the sale of its wholly owned subsidiary, Columbus Energy, LLC, to Memorial Production Partners, LP. The divestment results in the transfer of its ownership in more than 500 gas wells located in South Texas. Under the terms of the agreement, BlueStone will continue to operate the properties as a contractor to the purchaser under the terms of a transition services agreement between the parties. The length of this transition period has yet to be determined, but should last well into 2012.

In addition, BlueStone has formed BlueStone Natural Resources II, LLC which represents the management team’s third partnership with capital sponsor Natural Gas Partners. Shortly after formation, the new company closed on two acquisitions, valued at more than $50 million. The new properties include more than 125 operated wells located in Texas.

John Redmond, President of the BlueStone entities adds, “The BlueStone management team could not be more excited about continuing our partnership with who we feel is the premier equity sponsor in our space. This partnership will provide access to the capital resources necessary to continue our acquisition centric business plan”.

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.

BlueStone Natural Resources Announces the Addition of Three Banks to its Credit Group

August 10th, 2009 Posted by Uncategorized 0 thoughts on “BlueStone Natural Resources Announces the Addition of Three Banks to its Credit Group”

August 2009 – Tulsa, OK

BlueStone Natural Resources, LLC (“BlueStone”) recently added three banks to its existing credit facility. Comerica Bank, Compass Bank and Wells Fargo recently entered the $150 Million facility that is led by Bank of America.

BlueStone was formed in 2006, utilizing funds from the management team and Natural Gas Partners. Since formation, BlueStone has consummated 60 transactions creating a property set largely focused in South Texas. BlueStone currently operates 165 wells, predominately in the prolific Lobo Trend of Webb and Zapata counties, and has an acreage position consisting of more than 100,000 acres situated in South Texas and East Texas.

More than 50,000 acres are located in the emerging Eagle Ford shale play in southern La Salle and McMullen counties. BlueStone participated in its first Eagle Ford well earlier this year, which has been drilled and is awaiting completion. A second Eagle Ford well is currently drilling.

An additional 30,000 acres are located in East Texas, on the border of Walker and Madison counties. Historically, this acreage has been productive from the Glen Rose and James Lime formations, utilizing extremely long reach horizontal drilling.

BlueStone plans to use the increased credit facility to finance growth through additional acquisitions and drilling in its core South Texas and East Texas holdings. John Redmond, President of BlueStone adds, “The addition of Comerica, Compass and Wells Fargo builds additional strength in our banking group. This capacity will allow BlueStone to remain aggressive in the acquisition market over the next year. Historically, we have grown through acquisition and we plan to continue our efforts to find opportunities that increase BlueStone’s holdings in its core areas.”

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.

BlueStone Natural Resources Announces Acquisitions

July 10th, 2007 Posted by Uncategorized 0 thoughts on “BlueStone Natural Resources Announces Acquisitions”

July 2007 – Tulsa, OK

BlueStone Natural Resources has acquired Columbus Energy for an undisclosed amount. Columbus will continue to operate as a subsidiary of BlueStone.

Columbus, which has assets concentrated in South Texas and the Rocky Mountains, operates more than 140 wells in these areas producing more than 17.8 MMCFED.

In a separate transaction, BlueStone purchased additional interests in certain South Texas properties operated by Columbus from a subsidiary of Samson.

The funding for the transactions was provided, in part, by a $100MM credit facility with Bank of America, NA.

BlueStone was formed in February 2006 utilizing funds from the management team and Natural Gas Partners. Natural Gas Partners is an affiliate of NGP Energy Capital Management, a private equity firm based in Irving, Texas, that invests in all sectors of the energy industry. BlueStone is based in Tulsa, Oklahoma, with field offices in Laredo, Texas and Sidney, Montana.

Please direct any questions regarding this transaction to bluestone@bluestone-nr.com.

BlueStone Natural Resources Formed

February 10th, 2006 Posted by Uncategorized 0 thoughts on “BlueStone Natural Resources Formed”

February 2006 – Tulsa, OK

BlueStone Natural Resources was formed in February, 2006 utilizing funds from the Management Team and Natural Gas Partners. Some members of the BlueStone Management Team previously partnered with Natural Gas Partners to form AXIO Natural Resources in 2003. AXIO Natural Resources was sold to Chesapeake earlier this year.

The company is headquartered in Tulsa, Oklahoma. BlueStone plans to actively acquire assets in South Texas, East Texas, the Texas panhandle and Western Oklahoma. For additional information, contact John Redmond, President, at (918) 392-9202 or by email at bluestone@bluestone-nr.com.