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SOURCE Capstone Natural Resources
$50 Million Acquisition in West Texas Adds to Company's Growing Operations
TULSA, Okla., March 11, 2013 /PRNewswire/ -- Capstone Natural Resources Partners, L.P., a Tulsa, Oklahoma-based oil and gas producing company, today announces the $50 million acquisition of oil properties in West Texas. The properties, in Andrews and Gaines Counties, will significantly expand Capstone's operations as it seeks to grow operations in the Central Basin Platform.
The $50 million acquisition of producing assets and associated acreage is from a private seller. The Capstone team identified the potential of the properties, contacted the seller, and completed the transaction through direct, proprietary negotiations. The transaction is being primarily financed with growth equity from Lime Rock Partners as part of its $100 million commitment to Capstone.
Phil Terry, CEO of Capstone, noted, "Today is an important day in Capstone's young history. We believe that the newly acquired properties complement our existing asset base perfectly, adding production, cash flow, and low-risk drilling opportunities. The acquisition also provides Capstone with greater scale to assist us in our continuing plan to create value in every part of our strategy: high-density drilling, operational optimization, new acreage leasing, and property acquisitions."
Capstone is an exploration and production company focused on the Central Basin Platform of West Texas and Southeast New Mexico. Formed in early 2012, the senior leadership of Capstone brought to the company's strategy a wealth of experience pursuing a similar model as senior officers of Arena Resources Inc., a publicly traded company that was sold to SandRidge Energy for $1.6 billion in 2010. Capstone is led by Phil Terry, CEO (former CEO of Arena Resources), and David Ricks, President and COO (former VP of Operations at Arena Resources Inc). They lead a highly accomplished Tulsa-based team that includes Pat McConn, VP of Geology; Tom Wahl, VP of Land; Kim Nichols, Accounting Manager; and Mike Willis, General Counsel.
Established in 1998, Lime Rock Partners is a creative investment partner in building differentiated oil and gas businesses, side by side, with entrepreneurs every day. From five locations on three continents, the Lime Rock Partners team has helped build high-growth E&P, service, manufacturing, and technology companies. For more information, please visit www.lrpartners.com.
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